Cornerstone Exercise 10-35 (Algorithmic) Preferred and Common Stock Dividends

Yossarian Corporation has a single class of common stock and a single class of cumulative preferred stock. The cumulative preferred stock requires the corporation to pay an annual dividend of $3,750 to preferred stockholders. On January 1, 2019, Yossarian's preferred dividends were 1 year in arrears, which means that Yossarian declared neither preferred nor common dividends in 2018. During the next 3 years (20192021), Yossarian's board of directors determined they would be able to pay $5,000, $7,000, and $12,900, respectively.

Required:

Show how these anticipated payments will be split between preferred and common stockholders. If an amount box does not require an entry, leave it blank and if the answer is zero, enter "0".

Year	Amount Available for Dividends	Dividends to Preferred	Dividends to Common	Remaining in Arrears
2018
2019
2020
2021