Question 6. Part B. (4 marks). In addition to common shares outstanding, Essex Corporation has the following preferred shares outstanding at the end of 2020. as indicated below: Preferred shares Number of shares Annual dividends 1000 shares $25 stated value, 10%, non-cumulative $100 stated value, 6% cumulative, convertible Required: 2500 shares 1. Indicate the amount of annual dividend on each issue of the preferred shares by completing the last column of the above table (2 marka). 2. Assume that there are one year of dividends in arrears at the beginning of 2020 and Essex declared total dividends of $40,000 in 2020. What is the amount of dividends that the common shareholders will receive in 2020? (marks): Question 7. (6 Marks) Place an X in the appropriate columns for each of the following situations to indicate how amounts are classified and how or whether cash is affected: Situation Operating Investing Financing Effect on Cash Activity Activity Activity Inflow Outflow No (+) (-) Effect a. Paying off accounts payable with cash. b. Issuance of bonds for cash. c. Retirement of common stock with cash. d. Collection of accounts receivable with customer cash. e. Paid cash for inventory. f Acquired land by issuing common stock