Lightfoot Inc., a software development firm, has stock outstanding as follows: 20,000 shares of cumulative preferred 3% stock, $20 par, and 25,000 shares of $50 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $4,600; second year, $7,600; third year, $45,300; fourth year, $85,000. Calculate the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, enter "0".

LIGHTFOOT Inc

Computation of dividend per each class of stock

Year 1

Total dividend  available                              $4,600

Cumulative prefered dividend

(3%* 20,000*$20)                                              12,000

unpaid  preferred dividend carried forward       7,400

Dividend per share :

Cumulative preferred stock  =  $12,000/20,000 =  $0.6

Common stock                      =      $0.

Year 2                

Total dividend available                                        $7,600

Cumulative prefered stock dividend :

Previous year brought forward           $7,400

current year                                         12,000       19,400

Unpaid preferred dividend carried forward           11,800  

Dividend per share :

Cumulative preferred stock  =  $12,000/20,000 =  $0.6

Common stock                      =      $0.

Year 3

Total dividend available                                       $ 45,300

Cumulative Preferred stock dividend :

Dividend brought forward                     11,800

current year                                           12,000         (23,800)

Dividend available for Common stock                        21,500

Dividend per share :

Cumulative preferred stock  = $12,000/20,000 = 0.6

Common stock                        =   $21,500/25,000 =   $0.86

Year 4

Total dividend available                       $85,000

cumulative Preferred bdividend            (12,000)

Dividend available for Common stock   73,000

Cumulative preferred stock  = $12,000/20,000 = $0.60

Common stock                        =   $73,000/25,000 =   $2.96

Explanation:

answer; schedule c;