Village Delivery Company purchased a lot to construct a new warehouse for $263,000, paying $44,000 in cash and giving a short-term note for the remainder. Legal fees paid in connection with the purchase were $1,500, delinquent taxes assumed were $15,300, and fees paid to remove an old building from the land were $21,900. Materials salvaged from the demolition of the building were sold for $4,600. A contractor was paid $933,300 to construct a new warehouse.
Determine the cost of the land to be reported on the balance sheet. ______________
Yukon Bike Corp. manufactures mountain bikes and distributes them through retail outlets in Canada, Montana, Idaho, Oregon, and Washington. Yukon Bike Corp. declared the following annual dividends over a six-year period ending December 31 of each year: Year 1, $28,000; Year 2, $44,000; Year 3, $48,000; Year 4, $60,000; Year 5, $76,000; and Year 6, $140,000. During the entire period, the outstanding stock of the company was composed of 40,000 shares of 2% preferred stock, $65 par, and 50,000 shares of common stock, $1 par.
Instructions:
1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. Assume that preferred dividends are paid before any common dividends. Round per share amounts to the nearest cent when rounding is required. If an answer is zero, enter "0".
Preferred Dividends Common Dividends
Year Total Dividends Total Per Share Total Per Share
Year 1 $28,000 $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 $fill in the blank 4
Year 2 44,000 fill in the blank 5 fill in the blank 6 fill in the blank 7 fill in the blank 8
Year 3 48,000 fill in the blank 9 fill in the blank 10 fill in the blank 11 fill in the blank 12
Year 4 60,000 fill in the blank 13 fill in the blank 14 fill in the blank 15 fill in the blank 16
Year 5 76,000 fill in the blank 17 fill in the blank 18 fill in the blank 19 fill in the blank 20
Year 6 140,000 fill in the blank 21 fill in the blank 22 fill in the blank 23 fill in the blank 24
$fill in the blank 25 $fill in the blank 26
2. Calculate the average annual dividend per share for each class of stock for the six-year period. Round answers to the nearest cent.
Average annual dividend for preferred $fill in the blank 27 per share
Average annual dividend for common $fill in the blank 28 per share
3. Assuming that the preferred stock was sold at $57.50 and common stock was sold at $5.00 at the beginning of the six-year period, calculate the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share (a) for preferred stock and (b) for common stock.
Round your answers to two decimal places.
a. Preferred stock fill in the blank 29 %
b. Common stock fill in the blank 30 %