Kato Ranch Company has outstanding 1,500 shares of \(\$ 100\) par value, 10\%, preferred stock and 30,000 shares of \(\$ 10\) par value common stock. During a sevenyear period, the company paid out the following amounts in dividends: \(1987, \$-0-\); \(1988, \$ 40,000 ; 1989, \$-0-; 1990, \$ 25,000 ; 1991, \$ 30,000 ; 1992, \$ 42,000\); and \(1993, \$ 85,000\).

\section*{Required}
1. Prepare three schedules with columnar headings as follows:

2. Complete a schedule under each of the following assumptions. Round your calculations of dividends per share to the nearest penny. There were no dividends in arrears for the years prior to 1987 .
\(a\). The preferred stock is noncumulative and nonparticipating.
\(b\). The preferred stock is cumulative and nonparticipating.

c. The preferred stock is cumulative and fully participating.

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Year Calculations Preferred Dividend per Share Common Dividend per Share