Final answer:
In 2015, Winter Company's total payable dividends to preferred shareholders (including arrears) was P470,000. However, the company only paid P350,000 in dividends, which means that all of it was allocated to preferred shareholders and no dividends were paid to ordinary shareholders.
Step-by-step explanation:
To determine how much cash dividends the ordinary shares would receive in 2015, we first need to calculate the total dividends owed to the preferred shareholders. Since the preferred stock is cumulative, any unpaid dividends from previous years are carried forward. The preferred shares are 12% preferred, meaning that each preferred share should receive a dividend equal to 12% of its P100 par value, which is P12 per share annually. With 20,000 preferred shares outstanding, the company should pay P240,000 (20,000 shares × P12) in dividends to preferred shareholders each year.
Since the company was organized on January 2, 2013, and no dividends have been paid until 2014, the preferred shareholders would be entitled to two years of dividends by the end of 2014. That means preferred shareholders were owed P480,000 for 2013 and 2014 combined (P240,000 for each year). The company paid P250,000 in dividends at the end of 2014, so not all of the preferred dividends were paid; preferred shareholders would carry forward a dividend arrearage of P230,000 (P480,000 - P250,000) into 2015.
In 2015, the preferred shareholders should receive P240,000 in dividends for that year, in addition to the P230,000 arrearage from previous years, totaling P470,000 (P230,000 + P240,000). The company paid P350,000 in dividends at the end of 2015. After satisfying the cumulative dividends owed to preferred shareholders, the cash dividends that would be available for the ordinary shareholders would be zero, as the total amount paid (P350,000) does not cover the cumulative preferred dividends (P470,000).