Tableau DA 11-2: Exercise, Dividends on cumulative preferred stock LO C2 As head of Adita Incorporated, potential invest

Post by **answerhappygod** » Thu May 19, 2022 3:50 pm

Tableau DA 11-2: Exercise, Dividends on cumulative
preferred stock LO C2
As head of Adita Incorporated, potential investors are asking
questions about the company’s dividend payment history. The
investors are also curious how dividend payments differed for
common and preferred shareholders. To help answer their questions,
the following Tableau Dashboard is provided.

: Tableau Da 11 2 Exercise Dividends On Cumulative Preferred Stock Lo C2 As Head Of Adita Incorporated Potential Invest 1 (94.64 KiB) Viewed 149 times

Cash Distributed by Year
Year 1 - Cash Dividends Distributed: $25,000
Year 2 - Cash Dividends Distributed: $30,000
Year 3 - Cash Dividends Distributed: $210,000
Year 4 - Cash Dividends Distributed: $360,000
Number of Shares
Preferred Stocks: 70,000 shares
Common Stock: 180,000 shares
Common Stock Share Price
Year 1: $14
Year 2: $20
Year 3: $18
Year 4: $25
1. Assume that preferred stock
is cumulative and compute the amount of cash
dividends paid in each of Years 1, 2, 3, and 4 for each of the two
classes of shareholders. Also calculate the total cash dividends
paid out to each class for Years 1, 2, 3, and 4 combined.
2. How should dividends in arrears be
reported on Adita’s financial statements?

: Tableau Da 11 2 Exercise Dividends On Cumulative Preferred Stock Lo C2 As Head Of Adita Incorporated Potential Invest 2 (33.2 KiB) Viewed 149 times

: Tableau Da 11 2 Exercise Dividends On Cumulative Preferred Stock Lo C2 As Head Of Adita Incorporated Potential Invest 3 (14.42 KiB) Viewed 149 times

Cash Dividends Distributed by Year $400,000 Number of Shares $350,000 Preferred Stock $300,000 $250,000 $200,000 Common Stock $150,000 $100,000 Preferred Stock Dividend Rate Preferred Stock 6% Par Value Per Share $50,000 Common Stock $0.01 $0 Preferred Stock $20.00 Year 1 Year 2 Year 3 Year 4 Common Stock Share Price $25 $20 $15 $10 $5 $0 Year 1 Year 2 Year 3 Year 4
Required 1 Required 2 Assume that preferred stock is cumulative and compute the amount of cash dividends paid in each of Years 1, 2, 3, and 4 for each of the two classes of shareholders. Also calculate the total cash dividends paid out to each class for Years 1, 2, 3, and 4 combined. Par Value per Preferred Share Dividend Rate Dividend per Preferred Share Number of Preferred Shares Preferred Dividend Annual Preferred Dividend: Total Cash Dividend Paid Paid to Preferred Paid to Common Dividends in Arrears at year-end Year 1 $ 25,000 Year 2 30,000 Year 3 Year 4 210,000 360,000 625,000 Totals $ < Required 1 Required 2 >
Complete this question by entering your answers in the tabs below. Required 1 Required 2 How should dividends in arrears be reported on Adita's financial statements? How should dividends in arrears be reported on Adita's financial statements? < Required 1 Required 2