Dividends on preferred stock.

The stockholders' equity section of Lemay Corporation shows the following on December 31, 2015: Preferred stock5%, $100 par, 5,000 shares outstanding $ 500,000 Common stock$10 par, 60,000 shares outstanding 600,000 Paid-in capital in excess of par 200,000 Retained earnings 113,000 Total stockholders' equity $1,413,000.

Instructions Assuming that all of the company's retained earnings are to be paid out in dividends on 12/31/15 and that preferred dividends were last paid on 12/31/13, show how much the preferred and common stockholders should receive if the preferred stock is cumulative and fully participating.

*Please post solution, this is a study question for a test, so I need to understand the process. Thank you!