Question

As head of Adita Inc., 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. 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?

Answer 1

The Solution is attached in form of an excel sheet.

Things that might help:

Year 4 = $ 360000 - 84000 = $ 276000

Dividend per preferred share = Total Preferred dividend for that year / total preferred no of shares.

Download xlsx