Alloy Corporation has 25,000 shares of $1.40 preferred stock outstanding in addition to its common stock. The $1.40 designation means that the preferred stockholders receive an annual cash dividend of $1.40 per share. In 2018, Alloy declares an annual dividend of $500,000. The allocation to preferred and common stockholders is: .: (Click the icon to view the data.) Read the requirements. 1. How much in dividends must Alloy declare each year before the common stockholders receive any cash dividends for the year? Alloy must declare dividends of $ C e ach year before the common stockholders receive any cash dividends for the year. 2. Suppose Alloy declares cash dividends of $200,000 for 2018. How much of the dividends goes to preferred shareholders? How much goes to common shareholders? Class of Stock2018 Dividends Preferred Common Total 3. Is Alloy's preferred stock cumulative or noncumulative? How can you tell? Alloy's preferred stock are because they are not specifically designated as 4. Alloy passed the preferred dividend in 2017 and 2018. Then in 2019, Alloy declares cash dividends of $800,000. How much of the dividends goes to preferred shareholders? How much goes to common shareholders? Class of Stock 2019 Dividends Preferred Common Total Data Table Preferred dividend (25,000 shares x 1.40 per share) ......... 35,000 465,000 Common dividend (remainder: $500,000 - $35,000)...........- Total dividend.... $ 500,000 Print Done