Cash Dividends

Sanders Corporation has the following shares outstanding: $6,000$ shares of $$50$ par value, $6\%$ preferred

stock and $40,000$ shares of $$1$ par value common stock. The company has $$328,000$ of retained earnings.

At year$-$end, the company declares its regular $$3\mathrm{.}00$ per share cash dividend on the preferred stock and a

$$2\mathrm{.}20$ per share cash dividend on the common stock. Three weeks later, the company pays the dividends.

a$.$ Determine the financial statement effect of the declaration of the cash dividends.

$b.$ Determine the financial statement effect of the payment of the cash dividends