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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
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. Cash Dividends Distributed by Year $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 Number of Shares Preferred Stock Common Stock Preferred Stock Dividend Rate Preferred Stock Par Value Per Share Common Stock 50 Preferred Stock Year 1 Year 2 Year 3 Year 4 Common Stock Share Price 50.01 $20.00 $25 $20 $15 $10 $5 $0 Year 1 *+ableau Common Stock Share Price Year 2 Year 3 Year 4 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? 2 How should dividends in arrears be reported on Adita's financial statements? Complete this question by entering your answers in the tabs below. 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. Annual Preferred Dividend: Par Value per Preferred Share Dividend Rate Dividend per Preferred Share Number of Preferred Preferred Dividend Shares Dividends in Total Cash Dividend Paid Paid to Preferred Paid to Common Arrears at year-end Year 1 25,000 Year 2 30,000 Year 3 210,000 Year 4 360,000 Totals $ 625,000 $ 0 S 0 Required 1 Required 2 > 2. How shoula aiviaenas in arrears be reported on Aaita's financial statements? Complete this question by entering your answers in the tabs below. 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 Dividend Rate Share Dividend per Preferred Share Number of Preferred Preferred Dividend Shares 25 Annual Preferred Dividend: Dividends in Total Cash Dividend Paid Paid to Preferred Paid to Common Arrears at year-end Year 1 Year 2 Year 3 S 25,000 30,000 210,000 Year 4 360,000 Totals $ 625,000 S 0 S Required 1 Required 2 >
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