Example of Dividends

NOTE 28 - DIVIDENDS PAID

The Company has forecasted the following dividends to be paid in November of each year:

200X 200Y 200Z
Dividends Paid per year $20,000 $25,000 $30,000

 

Class "B" Shares are entitled to an non-cumulative, $240 dividend before any other Class of Common Shares. In addition, after all mandatory dividends have been distributed to Class "B" Shareholders, all other Class Holders, including Class "B" Shareholders, will share the remaining dividend on a prorated bases. Below illustrates the distribution of the forecasted dividends per year assuming all 50 Class "B" Common Shares are purchased.

200X 200Y 200Z
Forecasted Dividends Paid per year $20,000 $25,000 $30,000
Less: Mandatory dividend to Class "B" - Common (50 Class "B" Shares @ $240 per share) $12,000 $12,000 $12,000
Remaining Dividends to be Shared by all Classes $ 8,000 $13,000 $18,000
Portion allocated to Class "B" (50 shares divided by 150 shares x $8,000, 13,000 and 18,000) $ 2,667 $ 4,333 $ 6,000
Portion allocated to Class "A" (100 shares divided by 150 shares x $8,000, 13,000 and 18,000) $ 5,333 $ 8,667 $12,000

DIVIDEND SUMMARY: 200X 200Y 200Z

Total Dividends Distributed to Class "A" $ 5,333 $ 8,667 $12,000
Total Dividends Distributed to Class "B" $14,667 $16,333 $18,000
Total Forecasted Dividend per year $20,000 $25,000 $30,000


This concludes J&B's "Notes to the Forecasted Financial Statements".

Categories: Samples and Examples