Laura & Marty Ltd. did not pay dividends on its 7.5%, $100 par value cumulative preferred stock during 2018 or 2019. Since 2012, 115,000 shares of this stock have been outstanding. Laura & Marty Ltd. has been profitable in 2020 and is considering a cash dividend on its common stock that would be payable in December 2020.

Required: Calculate the amount of dividends that would have to be paid on the preferred stock before a cash dividend could be paid to the common stockholders.