Andrews Company has $$110,000$ available to pay dividends. It has $2,000$ shares of $10\%,$ $$100$ par, preferred stock and $30,000$ shares of $$10$ par common stock outstanding. The preferred stock is selling for $$100$ per share, and the common stock is selling for $$25$ per share.Feedback

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b$.$ Preferred stock is nonparticipating and cumulative. Preferred dividends are $2$ years in arrears at the beginning of the year.

Andrews Company

Schedule of dividends to be paid

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c$.$ Preferred stock is fully participating and cumulative. Preferred dividends are $1$ year in arrears at the beginning of the year.

Andrews Company

Schedule of dividends to be paid