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.

1. Show how much the preferred and common stockholders should receive if the preferred stock is cumulative and non- participating.

2. Show how much the preferred and common stockholders should receive if thepreferred stock is cumulative and fully participating.

PROBLEM SOLVED Pref Com Total

Dividends in arrears (5% of 500000) 25000 - 25000

Current Years Div 25000 30000 55000

Participating Div (2%) 15000 18000 33000

33/1100000*500000

65000 48000 33000

3.Show how much the preferred and common stockholders should receive if thepreferred stock is cumulative and partially participating up to 2%.

Please help me with 1 and 3, show all work. THANKS!