Ned Company reported the following information for its fiscal year: Net income
$500,000
Preferred dividends
30,000
Common share dividends
20,000
Preferred shares are cumulative and carry an annual dividend of
10,000
The preferred dividends listed above include the current year and prior accumulated dividends. What is the amount of net income available to common shareholders?
A)$440,000
B)$450,000
C)$470,000
D)$490,000

Question

Quizplus · Accepted Answer

The Answer of Ned Company reported the following information for its fiscal year: Net income
$500,000
Preferred dividends
30,000
Common share dividends
20,000
Preferred shares are cumulative and carry an annual dividend of
10,000
The preferred dividends listed above include the current year and prior accumulated dividends. What is the amount of net income available to common shareholders?
A)$440,000
B)$450,000
C)$470,000
D)$490,000

Ned Company Reported the Following Information for Its Fiscal Year