How do you calculate preferred stock dividends given the following limited info?

Question

Cash	 = 30,000	 
Receivables (net) = 72,500		 
Inventory = 200,000	 
Accounts payable = 50,000		 
Notes payable = 30,000 
Common stock, $100 par = 400,000	 
Retained earnings = 113,500	 

Additional information: 
1.	The inventory turnover is 4.4 times.
2.	The return on common stockholders' equity is 18%. The company had no additional paid-in capital.
3.	The receivables turnover is 11.2 times.
4.	The return on assets is 16%.
5.	Total assets at December 31, 2009, were $605,000.

JKRB · Accepted Answer

2. The return on common stockholders' equity is 18%. The company had no additional paid-in capital. (Net Income - Preferred Dividends) / Common Stock

4. The return on assets is 16%. Net Income / Total assets

These are the only two ratios you need to calculate. The total assets are given. From that, you can calculate Net Income for #4. Then from that, you can calculate Preferred Dividends for #2.

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How do you calculate preferred stock dividends given the following limited info?

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