For the Year Ended December 31,2015,Jovial Productions Inc

question 82

Essay

For the year ended December 31,2015,Jovial Productions Inc.earned $13,000,000.Outstanding preferred shares included $1,500,000 in 9% cumulative preferred shares issued on January 1,2012 and 32,000 $160 non-cumulative preferred shares issued on January 1,2014 that are each entitled to dividends of $7 per annum.Dividends were neither declared nor paid on either class of the preferred shares in 2013 or 2014.On December 15,2015,the company declared and paid the $270,000 dividends in arrears on the 9% cumulative preferred shares.The company also declared and paid $224,000 dividends on the non-cumulative preferred shares.
Requirement:
Determine the net income available to ordinary shareholders for the year ended December 31,2015.

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Definitions:

Direct Labor Hours

These are the total hours worked by employees directly involved in the manufacturing process or production of goods.

Materials Handling

The movement, protection, storage, and control of materials and products throughout manufacturing, warehousing, distribution, consumption, and disposal.

Machine Hours

A measure of the total time that machinery is in use, often utilized as a basis for allocating factory overhead costs to products.

Machine Set-Ups

Machine Set-Ups refer to the preparatory tasks and adjustments made to production equipment before a new production run, aimed at ensuring operational efficiency and quality.