Question $6($continued$)$ Part B$.(4$ marks$).$

In addition to common shares outstanding, Essex Corporation has the following preferred shares outstanding at the end of $2023,$ as indicated in the following table.

Preferred shares Number of shares Total dividends

$$25$ stated value, $8\%,$ non$-$cumulative

$1000$ shares

$$100$ stated value, $7\%$ cumulative, convertible

$2500$ shares

Required: $($Need not show calculations$)$

$1.$ Indicate the amount of annual dividend on each issue of the preferred shares by completing the last column of the above table $(2$ marks$)$

$2.$ Assume that there are one year of dividends in arrears at the beginning of $2023,$ and Essex declared total dividends of $$40,000$ in $2023.$ What is the amount of dividends that the common shareholders will receive in $2023?(2$ marks$)$:

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Question $7(6$ Marks$)$

Place an X in the appropriate columns for each of the following situations to indicate how amounts are classified and how or whether cash is affected:

Situation Operating Activity Investing Activity Financing Activity Effect onCash

Inflow

$(+)$ Outflow

$(-)$ No Effect

a$.$ Paying off accounts payable with cash.

b$.$ Issuance of bonds for cash.

c$.$ Retirement of common stock with cash.

d$.$ Collection of accounts receivable with customer cash.

e$.$ Paid cash for inventory.

f$.$ Acquired land by issuing common stock.