Cash dividends and two classes of stock
Raymond Inc. ,has two classes of capital stock outstanding: 25,000 shares of 5%,$100 par value cumulative preferred and 30,000 shares of $10 par value common.The company had a deficit (negative balance in retained earnings)of $160,000 at the beginning of the current year,and preferred dividends were three years in arrears.During the current year,the company earned net income of $970,000.What will be the balance in the Retained Earnings account at the end of the current year if the company takes all the actions necessary to pay a dividend of $2.50 per share on the common stock? $________

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The Answer of Cash dividends and two classes of stock
Raymond Inc. ,has two classes of capital stock outstanding: 25,000 shares of 5%,$100 par value cumulative preferred and 30,000 shares of $10 par value common.The company had a deficit (negative balance in retained earnings)of $160,000 at the beginning of the current year,and preferred dividends were three years in arrears.During the current year,the company earned net income of $970,000.What will be the balance in the Retained Earnings account at the end of the current year if the company takes all the actions necessary to pay a dividend of $2.50 per share on the common stock? $________

Cash Dividends and Two Classes of Stock