During 2013-2017,Waton Inc $\begin{array}{ll}2013 & \text { none } \\2014 & \$ 125,000 \\2015 & \$ 150,000 \\2016 & \$ 200,000 \\2017 & \$ 300,000\end{array}$

question 67

Essay

During 2013-2017,Waton Inc.had the following issuances of shares outstanding for the entire period:
30,000 $5,cumulative preferred shares
55,000 common shares
Cash dividends declared by the board of directors during 2011-2015 were as follows:
$\begin{array}{ll}2013 & \text { none } \\2014 & \$ 125,000 \\2015 & \$ 150,000 \\2016 & \$ 200,000 \\2017 & \$ 300,000\end{array}$ Compute the amount of total dividends and dividends per share payable to each class of shares during 2013-2017.
$\begin{array}{|l|l|l|l|l|}\hline\text { Year } & \text { Total Preferred } & \begin{array}{c}\text { Per Share } \\\text { Preferred }\end{array} & \text { Total Common } & \begin{array}{c}\text { Per Share } \\\text { Common }\end{array} \\\hline & & & & \\\hline & & & & \\\hline & & & & \\\hline & & & & \\\hline\end{array}$

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Definitions:

Governmental Agency

An organization established by a government to administer specific legislation and carry out public policies.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest of the shareholders or owner.

Net Income

The net income a company earns once all costs and taxes are subtracted from the total revenues.

Investments

Assets purchased with the expectation that they will generate income or appreciate in value over time.