Issuance of 100K shares of $100 par value preferred stock and 500K shares of $1 par value common stock. Ten thousand shares of preferred stock issued at par and 170K shares of common stock sold for $15 per share. Preferred stock pays 8% percent cum dividend. First 4 years: 2012-2015 Co. earned $1,385,000 and paid dividends of 75Cents per share in each year on its outstanding common stock: prepare balance sheet at Dec 31st with supporting schedule showing computation of retained earnings reported. (income increases ret earn; div decreases); any dividends in arrears? - on company's preferred stock at Dec 31, 2015? (if so why) - please show all computations from beginning - thanks