Chapter 16 Homework Dividends eBook Show Me How Andrews Company has $110,000 available to pay dividends. It has 2,000 shares of 10%, $100 par, preferred stock and 20,000 shares of $10 par common stock outstanding. The preferred stock is selling for $125 per share, and the common stock is selling for $20 per share. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet Required: 1. Determine the amount of dividends to be paid to each class of shareholder for each of the following independent assumptions. a. Preferred stock is nonparticipating and noncumulative. Andrews Company Schedule of dividends to be paid Preferred dividend Preferred Common 20,000 Remainder to common 90,000 Total 20,000 90,000 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 Preferred Common Dividends in arrears 40,000 Current preferred dividend 20,000 Remainder to common 50,000 Total 60,000 50,000