The Following Information Is Provided for Slickers,Inc

question 137

Multiple Choice

The following information is provided for Slickers,Inc.for year 2019: • Preferred stock,7%,$50 par value,1,000 shares issued and outstanding
• Common stock,$100 par value,2,000 shares issued and outstanding
• Dividends in arrears for 2017 and 2018
• Total dividends declared and paid during 2019 totaled $25,000
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How much of the dividend is paid to the common stockholders during 2019 assuming the preferred stock is cumulative?

• A)$3,500.
• B)$7,000.
• C)$22,500.
• D)$14,500.

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Definitions:

Total Cost

The complete expense incurred in production, combining both fixed and variable costs.

Wage Rates

The standard amount of compensation given to employees for their services per unit of time or piece of work.

AFC

Average Fixed Costs, which are total fixed costs divided by the quantity of output produced.

AVC

Average Variable Cost; the total variable costs divided by the quantity of output produced.