Exercise 11-10 Dividends on common and noncumulative preferred stock C2 York's outstanding stock consists of 80,000 shares of noncumulative 7.5% preferred stock with a $5 par value and also 200,000 shares of common stock with a $1 par value. During its first four years of operation, thi corporation declared and paid the following total cash dividends. Determine the amount of dividends pa each year to each of the two classes of stockholders: preferred and common. Also compute the total dividends paid to each class for the four years combined. Year 1 total cash dividends $20,000 Year 2 total cash dividends 28,000 Calculation of Preferred Dividend: Year 3 total cash dividends $200,000 Year 4 total cash dividends 350,000 *Assume the preferred stock is Cumulative instead of noncumulative** Common Year 1 ($20,000 paid) Preferred Common remainder Totals for the year Year 2 ($28,000 paid) Preferred - arrears from year 1 Preferred Common remainder Totals for the year Year 3 ($200,000 paid) Preferred arrears from year 2 Preferred Common remainder Totals for the year Year 4 ($350,000 paid) Preferred Common remainder Totals for the year Totals for four years Cumulative Preferred