Question

The shareholders' equity of ILP Industries Includes the items shown below. The board of directors of ILP declared cash dividends of $8 million, $17 million, and $170 million In Its first three years of operation-2018, 2019, and 2020, respectively Common stock Paid-in capital-excess of par, common Preferred stock, 8% Paid-in capital-excess of par, preferred ($ in millions) $100 840 200 560 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 (1.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 2018 2019 2020 Total

Answer 1

	Par value per preferred stock	Dividend rate	Annual preferred dividend
Annual preferred dividend	200	8%	16
	Total Cash dividend paid	Paid to preferred	Paid to Common	Dividend in arrears at year end
2018	8	8		8
2019	17	17		7
2020	170	23	147	0
Total	195	48	147