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In addition to common shares outstanding, Essex Corporation has the following preferred shares outstanding at the end of 2020, as indicated in the following table. Preferred shares Number of shares Total dividends $25 stated value, 10%, non-cumulative 1000 shares $100 stated value, 6% cumulative, convertible 2500 shares Required: 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 2020, and Essex declared total dividends of $40,000 in 2020. What is the amount of dividends that the common shareholders will receive in 2020? (2 marks): SUMMARY SHEET OF SELECTED RATIOS 1.Accounts receivable turnover Net credit sales Average accounts receivable 2. Inventory turnover Cost of goods sold Average inventory 3. Current ratio = Current assets Current liabilities 4. Debt to equity ratio= Total liabilities Total equity 5. Cash ratio=Cash and short-term investments Current liabilities 6. Return on assets ratio = Average total assets Net income + (Interest expense x (1- tax rate)) 7. Quick ratio = Cash + Accounts receivable + short term investments Current liabilities 8 Return on equity ratio = Net income Average equity 9. Gross profit percentage ratio = Gross profit (or Gross Margin) Net sales 10. Net profit margin percentage ratio Net income Net sales 11. Earnings per share (EPS) = (Net Income - Preferred Dividends) Average number of common shares outstanding

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