P11-4 Comparing Stock and Cash Dividends LO11-4, 11-6 Calgate Company had the following shares outstanding and retained earnings at December 31, 2017: Preferred shares, 4% (par value $25; outstanding, 10,100 shares) Common shares (outstanding, 31,000 shares) Retained earnings $ 252,500 605.000 286,000 The board of directors is considering the distribution of a cash dividend to the two groups of shareholders. No dividends were declared during 2015 or 2016. Three independent cases are assumed: Case A: The preferred shares are non-cumulative; the total amount of dividends is $51,200 Case B: The preferred shares are cumulative; the total amount of dividends is $61,000 Case C: Same as case B, except the amount is $96,500. 2. Assume that the company issued a 10 percent common stock dividend on the outstanding common shares when the market value per share was $25. Complete the following comparative schedule for common shares only. (Enter any decreases to account balances with a minus sign.) Amount of Dollar Increase (Decrease) Cash Dividend Case C Stock Dividend Item Assets Liabilities Shareholders' equity