Comment on the following and provide additional comments. "Dividends represent a corporation's distribution of profits to its shareholders on a proportional basis. These distributions can take various forms, including cash, property, scrip, or additional stock. A cash dividend specifically refers to the distribution of cash to shareholders. For a corporation to issue cash dividends, it must meet certain criteria: it should have retained earnings, sufficient cash on hand, and the dividend must be formally declared. There are three critical dates associated with dividends: Declaration Date: This is the day when the board of directors officially announces the dividend, and at this point, the company recognizes the liability for the payment. Record Date: This date is significant for determining which shareholders are entitled to receive the dividend, as it indicates when ownership of the shares is verified based on the corporation's records. Payment Date: On this date, the corporation distributes dividend checks to the eligible shareholders, and the transaction is recorded in the accounting books. It's important to note that preferred stockholders have priority over common stockholders when it comes to receiving dividends. If the preferred stock is cumulative, any missed dividends from prior periods must be paid to preferred stockholders before any dividends can be distributed to common stockholders