Exercise 18-18 (Algo) Effect of cumulative, nonparticipating preferred stock on dividends-3 years [LO18- 7] The shareholders' equity of ILP Industries includes the items shown below. The board of directors of ILP declared cash dividends of $17 million, $35 million, and $180 million in its first three years of operation-2024, 2025, and 2026, respectively. Common stock Paid-in capital-excess of par, common Preferred stock, 8% Paid-in capital-excess of par, preferred Required: 1. Determine the amount of dividends to be paid to preferred and common shareholders in each of the three years, assuming that the preferred stock is cumulative and nonparticipating. 2. Determine the amount of dividends to be paid to preferred and common shareholders in each of the three years, assuming that the preferred stock is noncumulative and nonparticipating. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the amount of dividends to be paid to preferred and common shareholders in each of the three years, assuming that the preferred stock is cumulative and nonparticipating. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Preferred Common 2024 2025 2026 17 35 ($ in millions) $ 130 1,010 350 585 0 0 0 180 < Required 1 Required 2 >
Exercise 18-18 (Algo) Effect of cumulative, nonparticipating preferred stock on dividends-3 years [LO18- 7] The shareholders' equity of ILP Industries includes the items shown below. The board of directors of ILP declared cash dividends of $17 million, $35 million, and $180 million in its first three years of operation-2024, 2025, and 2026, respectively. Common stock Paid-in capital-excess of par, common Preferred stock, 8% Paid-in capital-excess of par, preferred Required: 1. Determine the amount of dividends to be paid to preferred and common shareholders in each of the three years, assuming that the preferred stock is cumulative and nonparticipating. 2. Determine the amount of dividends to be paid to preferred and common shareholders in each of the three years, assuming that the preferred stock is noncumulative and nonparticipating. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the amount of dividends to be paid to preferred and common shareholders in each of the three years, assuming that the preferred stock is cumulative and nonparticipating. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Preferred Common 2024 2025 2026 17 35 ($ in millions) $ 130 1,010 350 585 0 0 0 180 < Required 1 Required 2 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Exercise 18-18 (Algo) Effect of cumulative, nonparticipating preferred stock on dividends-3 years [LO18-
7]
The shareholders' equity of ILP Industries includes the items shown below. The board of directors of ILP declared cash dividends of
$17 million, $35 million, and $180 million in its first three years of operation-2024, 2025, and 2026, respectively.
Common stock
Paid-in capital-excess of par, common
Preferred stock, 8%
Paid-in capital-excess of par, preferred
Required:
1. Determine the amount of dividends to be paid to preferred and common shareholders in each of the three years, assuming that the
preferred stock is cumulative and nonparticipating.
2. Determine the amount of dividends to be paid to preferred and common shareholders in each of the three years, assuming that the
preferred stock is noncumulative and nonparticipating.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Determine the amount of dividends to be paid to preferred and common shareholders in each of the three years, assuming
that the preferred stock is cumulative and nonparticipating.
Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10).
Preferred
Common
2024
2025
2026
17
35
($ in millions)
$ 130
1,010
350
585
0
0
0
180
< Required 1
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffe9e6d95-db01-4bc9-88bc-e685094dece8%2F404c81bd-5771-46b2-af16-ad9f1ea24dcb%2Fvhtyi88_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 18-18 (Algo) Effect of cumulative, nonparticipating preferred stock on dividends-3 years [LO18-
7]
The shareholders' equity of ILP Industries includes the items shown below. The board of directors of ILP declared cash dividends of
$17 million, $35 million, and $180 million in its first three years of operation-2024, 2025, and 2026, respectively.
Common stock
Paid-in capital-excess of par, common
Preferred stock, 8%
Paid-in capital-excess of par, preferred
Required:
1. Determine the amount of dividends to be paid to preferred and common shareholders in each of the three years, assuming that the
preferred stock is cumulative and nonparticipating.
2. Determine the amount of dividends to be paid to preferred and common shareholders in each of the three years, assuming that the
preferred stock is noncumulative and nonparticipating.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Determine the amount of dividends to be paid to preferred and common shareholders in each of the three years, assuming
that the preferred stock is cumulative and nonparticipating.
Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10).
Preferred
Common
2024
2025
2026
17
35
($ in millions)
$ 130
1,010
350
585
0
0
0
180
< Required 1
Required 2 >
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