As head of Adita Inc., potential investors are asking questions about the companys 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. 1. What is the total cash dividends paid out for Years 1, 2, 3, and 4 combined? 2. Assume that preferred stock is noncumulative and compute the Year 4 cash dividends paid to (a) preferred stockholders and (b) common stockholders.

3. 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. 4. How should dividends in arrears be reported on Aditas financial statements?

Cash Dividends Distributed by Year Number of Shares $400,000 $350,000 Preferred Stock $300,000 $250,000 $200,000 Common Stock $150,000 Preferred Stock Dividend Rate $100,000 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 Year 1 Year 2 Year 3 Year 4 Cash Dividends Distributed by Year Number of Shares $400,000 $350,000 Preferred Stock $300,000 $250,000 $200,000 Common Stock $150,000 Preferred Stock Dividend Rate $100,000 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 Year 1 Year 2 Year 3 Year 4