1) Zeta Co. has outstanding 100,000 shares of $100 par value cumulative preferred stock, which has a dividend rate of 7 percent. The company has not declared any cash dividends on the preferred stock for the last three years. Calculate the amount of dividends in arrears for the last three years on Zeta's preferred stock and briefly explain how this amount will be known to investors and creditors who may use the company's financial statements. 2) For the year just ended, Fellups, Inc., had income before income taxes of $275,000 from its normal, recurring operations. In addition, during the year, a tornado damaged one of the company's warehouses and its contents. Tornado damage is quite rare in Fellups's location. The estimated amount of the loss from the tornado is $100,000. The tax rate on all of the above is 40 percent. Prepare the final section of Fellups's income statement, beginning with income before income taxes