This problem consists of two parts.

PART I
A portion of the Stockholders’ Equity section of Bridge Corporation’s balance sheet as of December 31, 2019, appears below. Dividends have not been paid for the year 2018. There has been no change in the number of shares of stock issued and outstanding during 2018 or 2019. Assume that the board of directors of the corporation declared a dividend of $275,000 after completing operations for the year 2019.

Stockholders’ Equity
Preferred Stock (5% cumulative, $100 par value,
50,000 shares authorized)
At Par Value (25,000 shares issued)...............................................$2,500,000
Common Stock ($10 par value, 300,000 shares authorized)
At Par Value (300,000 shares issued)...............................................3,000,000

INSTRUCTIONS (Calculate 2019 amounts)
1. Compute the total amount of the dividend to be distributed to preferred stockholders.
2. Compute the amount of the dividend to be paid on each share of preferred stock.
3. Compute the total amount of the dividend available to be distributed to common stockholders.
4. Compute the amount of the dividend to be paid on each share of common stock.
5. Compute the amount of dividends in arrears (if any) that preferred stockholders can expect from future declarations of dividends.
PART II
Assume that after operations for 2019 were completed, the board of directors declares a dividend of $500,000 instead of $275,000. Use the information given in Part I to answer questions 1 through 5 above under these new assumptions.
Analyze: In regard to Part I, if dividends of $360,000 were declared in 2020, what per-share amount would be paid to preferred stockholders?