Alpha-Omega Industries Has 20,000 Shares of $10 Par Common Stock

question 117

Essay

Alpha-Omega Industries has 20,000 shares of $10 par common stock and 10,000 shares of $40 par,5% preferred stock outstanding.Total dividends available are $62,000.Compute the dividends to be distributed to preferred and common stockholders under the following condition.
The preferred stock is nonparticipating and non-cumulative with no dividends distributed last year.