Baxter Corporation has 75,000 shares of $1.25 preferred stock outstanding in addition to its common stock. The $1.25 designation means that the preferred stockholders receive an annual cash dividend of $1.25 per share. In 2021, Baxter 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 Baxter declare each year before the common stockholders receive any cash dividends for the year? Dividends the company must declare each year before the common stockholders receivable any cash dividends = 2. Suppose Baxter declares cash dividends of $350,000 for 2021. How much of the dividends goes to preferred shareholders? How much goes to common shareholders? 3. Is Baxter's preferred stock cumulative or noncumulative? How can you tell? Baxter's preferred stock are because they are not specifically designated as 4. Baxter passed the preferred dividend in 2020 and 2021. Then in 2022, Baxter declares cash dividends of $900,000. How much of the dividends goes to preferred shareholders? How much goes to common shareholders? Data table