M11-11 (Algo) Determining the Amount of a Preferred Dividend [LO 11-4] Colliers, Incorporated, has 120,000 shares of cumulative preferred stock outstanding. The preferred stock pays dividends in the amount of \$2 per share, but because of cash flow problems, the company did not pay any dividends last year. The board of directors. plans to pay dividends in the amount of $720,000 this yeat. Required: 1. What amount will go to preferred, stockholders? 2. How much will be avallable for common stock dividends