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Part $1$

A portion of the Stockholders' Equity section of Cailey Corporation's balance sheet as of December $31,20$X$3,$ appears below. Dividends have not been paid for the years $201$ and $20\backslash$times $2.$ There has been no change in the number of shares of stock issued and outstanding during these years. Assume that the board of directors of Cailey Corporation declares a dividend of $$28,650$ after completing operations for the year $203.$Required:

Compute the total amount of the dividend to be distributed to preferred stockholders.

Compute the amount of the dividend to be paid on each share of preferred stock.

Compute the total amount of the dividend available to be distributed to common stockholders.

Compute the amount of the dividend to be paid on each share of common stock.

Compute the amount of dividends in arrears $($if any$)$ that preferred stockholders may expect from future declarations of dividends.

Part II

Use the information given in Part I to solve this part of the problem. Assume that the board of directors of Cailey Corporation has declared a dividend of $$117,000$ instead of $$28,650$ after operations for $203$ are completed.

Required:

Compute the total amount of the dividend to be distributed to preferred stockholders.

Compute the amount of the dividend to be paid on each share of preferred stock.

Compute the total amount of the dividend available to be distributed to common stockholders.

Compute the amount of the dividend to be paid on each share of common stock.

Compute the amount of dividends in arrears $($if any$)$ that preferred stockholders may expect from future declarations of dividends.

Analyze:

Assume only Part I has transpired. If$,$ in $202,$ the board of directors declared a dividend of $$41,000,$ what amount would be paid to preferred stockholders?

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