Dividend Distribution Lake Company has the following shares outstanding: 20,000 shares of $50

par value, five percent cumulative preferred stock and 80,000 shares of $10 par value common

stock. The company declared cash dividends amounting to $200,000.

a. If no dividends in arrears on the preferred stock exist, how much in total dividends, and in divi-

dends per share, is paid to each class of stock?

b. If one year of dividends in arrears exist on the preferred stock, how much in total dividends, and

in dividends per share, is paid to each class of stock?