Bibb Corporation had the following stock outstanding for years 2010 through 2013:
Preferred Stock-$100 par value,8 percent cumulative,10,000 shares authorized,4,000 shares issued and outstanding
Common Stock-$20 par value,10,000 shares authorized,6,000 shares issued and outstanding
Bibb paid $15,000,$30,000,$100,000,and $130,000 in cash dividends during 2010,2011,2012,and 2013,respectively.
a.Calculate the total cash dividends received by owners of preferred and common stock and the dividends in arrears in each year.
b.Now assume that the preferred stock is noncumulative rather than cumulative.Calculate the total cash dividends received by owners of preferred and common stock in each year.

Question

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The Answer of Bibb Corporation had the following stock outstanding for years 2010 through 2013:
Preferred Stock-$100 par value,8 percent cumulative,10,000 shares authorized,4,000 shares issued and outstanding
Common Stock-$20 par value,10,000 shares authorized,6,000 shares issued and outstanding
Bibb paid $15,000,$30,000,$100,000,and $130,000 in cash dividends during 2010,2011,2012,and 2013,respectively.
a.Calculate the total cash dividends received by owners of preferred and common stock and the dividends in arrears in each year.
b.Now assume that the preferred stock is noncumulative rather than cumulative.Calculate the total cash dividends received by owners of preferred and common stock in each year.

Bibb Corporation Had the Following Stock Outstanding for Years 2010