On December 31, 2018, Tamber Company had 100,000 shares of $5 par value common stock and 60,000 shares of 8%, $10 par value preferred stock. Tamber declared a $150,000 dividend in the year 2018. The company did not pay any dividends in years 2016 and 2017 and they had $10,000 of unpaid preferred dividends from the year 2015. All dividends had been paid prior to the year 2015.

Assuming that the preferred dividend IS cumulative, how much will Tamber distribute to the preferred shareholders and common shareholders in 2018?

$106,000 to preferred shareholders, $44,000 to common shareholders.

$154,000 to preferred shareholders, $0 to common shareholders.

$150,000 to preferred shareholders, $0 to common

$144,000 to preferred shareholders, $6,000 to common shareholders.

None of these answers are correct

Crane Company reported net income of $20,000 for the current year. During the year, Inventory decreased by $7,000, Accounts Payable decreased by $8,000, Depreciation Expense was $10,000, and Accounts Receivable increased by $6,500. If the indirect method is used, what is the net cash provided by operating activities?

$10,500

$38,500

$22,500

$51,500