Exercise 18-18 (Algo) Effect of cumulative, nonparticipating preferred stock on dividends3 years [LO18-7]

The shareholders equity of ILP Industries includes the items shown below. The board of directors of ILP declared cash dividends of $9 million, $22 million, and $200 million in its first three years of operation2021, 2022, and 2023, respectively.

	($ in millions)
Common stock	$	150
Paid-in capitalexcess of par, common		870
Preferred stock, 6%		300
Paid-in capitalexcess of par, preferred		590

Required: Determine the amount of dividends to be paid to preferred and common shareholders in each of the three years, assuming that the preferred stock is cumulative and nonparticipating. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

	Par Value Preferred Stock	Dividend Rate		Annual Preferred Dividend
Annual Preferred Dividend:			%
	Total Cash Dividend Paid	Paid to Preferred		Paid to Common	Dividends in Arrears at year-end
2021
2022
2023
Total