Problem - The following are extracts from the financial statement analysis report of Dawn Ltd for the year ended 31 May 2015:

• Beginning and ending balances are identical for both accounts receivable and inventory
• Net income is sh.1,300,000
• Times interest earned is 5 (income taxes are zero).
• The company has 5% bonds outstanding issued at par
• Net profit margin is 10%.
• Gross profit margin 30%.
• Inventory turnover is 5 times
• Average collection period is 72 days
• Sales to end of year working capital 4 times.
• Current ratio is 1.5
• Acid test ratio is 1.0 (excludes prepaid expenses)
• Property plant and equipment is sh.6,000,000, stated net of one-third depreciation.
• Dividend paid on 8% non participating preferred are sh40,000. There is no change in ordinary shares. The preferred shares were issued two years ago at par
• Earnings per share are sh.3.75
• Ordinary shares has a sh.5 par value and was issued at par
• Retained earnings at 1st January, 2014 are sh.350,000

Required:

Prepare the company' statement of financial position at 31 May 2015 (include the following account classifications: cash, inventory, prepaid expenses, plant and equipment(net), current liabilities and shareholder's equity

Determine the amount of dividend paid on the ordinary share capital in year to 31st May 2015.