Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over a six-year period: Year 1, $16,000; Year 2, $32,000; Year 3, $116,000; Year 4, $126,000; Year 5, $138,000; and Year 6,
$152,000.
During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 20,000 shares of cumulative
preferred 2% stock, $100 par, and 100,000 shares of common stock, $15 par.
Required:
1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends
in arrears at the beginning of Year 1. Summarize the data in tabular form.
Note: If required, round your answers to two decimal places. If the amount is zero, enter "0".
Preferred Dividends
Common Dividends
Total
Dividends
Year
Total
Per Share
Total
Per Share
Year 1
$ 16,000
16,000
0.80
0
0
Year 2
32,000
32,000
1.60
0
0
Year 3
116,000
Year 4
126,000
Year 5
138,000
Year 6
152,000