1. Da Show Inc. owns and operates movie theaters throughout Texas and California. Da Show has declared the following annual dividends over a six-year period: 2002, $18,000; 2003, $54,000; 2004, $70,000; 2005, $75,000; 2006, $80,000; and 2007, $90,000. During the entire period, the outstanding stock of the company was composed of 20,000 shares of cumulative, nonparticipating, 2% preferred stock, $100 par, and 25,000 shares of common stock, $10 par.

A. Calculate the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrears on January 1, 2002. Summarize the data in tabular form, using the following column headings:

Total Preferred Dividends Common Dividends

Year Dividends Total Per Share Total Per Share

2002 $18,000

2003 54,000

2004 70,000

2005 75,000

2006 80,000

2007 90,000

B. Calculate the average annual dividend per share for each class of stock for the six-year period.