Marlin, Incorporated, declared a cash dividend of $$43,500$ in $2022$ when the following stocks were outstanding:

Common stock $20,700$ shares, par $$15$

$$310,500$

Preferred stock, $6\%,3,200$ shares, par $$10$

$32,000$

No dividends were declared or paid during the prior year.

Required:

Compute the amount of cash that would be paid to each stockholder group under each of the following separate cases. Show the

amount of current dividend and dividends paid in arrears wherever applicable.

Case A The preferred stock is noncumulative.

Case B The preferred stock is cumulative.