1. Compute total outstanding ordinary shares. M Corporation issued 100,000 ordinary shares at P20 par value on January 1, 20x1. On October 25, 20x1, 35,000 ordinary shares were repurchased at a cost of P30, and 75,000 preferred shares were issued at P75 par value with a dividend rate of 10%. On March 20x2, the board of directors declared dividends of P500,000 for shareholders on record as of December 25, 20x1.

2. Compute preferred share dividend assuming that the board of directors has declared P500,000 cash dividends for distribution. The corporation has 75,000 shares of 7% preferred shares outstanding with a par value of P30 outstanding as of the date on record.

3. Compute total dividends to ordinary shares assuming the board of directors declared cash dividends of P500,000 for distribution on December 23, 2021. Data from the stockholders equity before declaration reveals 2% preferred shares, P200 par, (25,000 shares authorized, 4,000 shares outstanding), noncumulative and fully participating; and, Ordinary shares, P20 par, (100,000 shares authorized, 40,000 shares outstanding).