Question

The shareholders' equity of ILP Industries includes the items shown below. The board of directors of ILP declared cash dividends of $4 million, 517 million, and $180 million in its first three years of operation-2018, 2019, and 2020, respectively. sin millions $130 Common stock Paid-in capital-excess of par, common Preferred stock, 58 Paid-in capital-excess of par, preferred 950 260 670 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 (.e., 10,000,000 should be entered as 10).) Par Value Preferred Dividend Rate Annual Preferred Dividend Stock Annual Preferred Dividend: Total Cash Dividend Paid Paid to Preferred Paid to Dividends Arrears at Common year-end 2018 2019 LLL SI 1 LUI 2020 Total S ol $ 0 OL

Answer 1

			Par Value	Dividend	Annual
			Preferred	Rate	Preferred
			Stock		Dividend
Annual Preferred Dividend			260	5%	13
			Total	paid to	paid to	Dividend
			Cash	preferred	common	arrear
			Div paid
2018			4	4	0	9
2019			17	17	0	5
2020			180	18	162	0
total				39	162