1.A company issues 100,000 shares of common stock and 10,000 shares of preferred stock with a $2 cumulative dividend. In the first year, no dividends are paid or declared. Which of the following statements are true?

All dividends in arrears on the preferred stock must be paid before any dividends can be paid on common stock

The company should report a $20,000 liability on its year-end balance sheet

The preferred stockholders are guaranteed to receive this $20,000 at some point in the future

By not paying the cumulative dividend, the company will be forced into bankruptcy within 90 days of the beginning of the new year