Calculate the amount of dividends in arrears on zetas


Question - Zeta Co. has outstanding 100,000 shares of $ 100 par value cumulative preferred stock which has a dividend rate of 6 percent. The company has not declared any cash dividends on the preferred stock for the last three years. Calculate the amount of dividends in arrears on Zeta's preferred stock and briefly explain how this amount will be known to investors and creditors who may use the company's financial statements.

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Accounting Basics: Calculate the amount of dividends in arrears on zetas
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