Company name: Granite Inc. You are the accountant for Granite Inc. and need to determine how the cash dividends declared by Granite's board of directors should be allocated between the corporation's common and preferred stockholders. Data Granite Inc. is authorized to issue 450,000 shares of $1.50 par value common stock and 500,000 shares of $4 par value, 2.8%, preferred stock. It currently has 102,000 shares of common stock and 225,000 shares of preferred stock issued and outstanding. Currently, no dividends are in arrears. The declared dividend amount for each year is included in the work area templates. Required: Start by calculating the preferred stock annual dividend, then use the templates provided below to allocate cash dividends declared, to preferred and common stockholders. Calculate the preferred stock annual dividend 25.200 Assume preferred stock is NON-cumulative Dividends to Dividends to Dividend Preferred stock dividend Preferred Common Year Declared amount* Arrearages Stockholders Stockholders 30.000 25.200 0 25.200 4,800 14.000 25.200 14,000 .... 12.000 25.200 12.000 32,000 25,200 25,200 6.800 5 50,000 25.200 0 25.200 24 800 This is the amount that preferred stockholders are entitled to for the year -- they may or may not get it, depending on how much cash dividend the Board of Directors declares. Assume preferred stock is CUMULATIVE Dividends to Dividends to Dividend Preferred stock dividend Preferred Common Year Declared amount* Arrearages Stockholders Stockholders 1 30,000 25,200 0 25,200 4,800 14,000 25,200 11,200 14,000 12.000 36.400 24 400 12.000 32.000 49.600 17.600 32,000 5 50,000 0