(b) 3. A company was organized in January 2012 and has 5,000 shares of $100 par value 5%, nonparticipating preferred stock outstanding and 40,000 shares of $10 par value common stock outstanding. It has declared and paid cash dividends each year, as shown below. Calculate the total dividends distributed to each class of stockholder under each of the assumptions given. Assuming Preferred Stock Is Cumulative Arrears Assuming Preferred Stock Is Not Cumulative Cash (25,000 Dividends Declared and Preferred Common Paid Dividend Dividend $20,000 20,000 $32,000 25 000 1,000 $38,000 25,000 13,000 $18,000 18.000 $22,000 221000 Year 2012 2013 2014 2015 2016 5,000 Preferred Common Dividend Dividend 20.000 30.000 2100 25,000 13,000 18,000 7000 22,000 Preferred dividend * current Arrears par value x %= dividend/share 25,000 tsooo xpref.shs ols Total Pref. Dividends. $100X5% = $5X500=25,000