PA$11-4($Algo$)$ Calculating Common and Preferred Cash Dividends $[$LO $11-2,$ LO $11-3,$ LO $11-4]$

Ritz Company had the following stock outstanding and Retained Earnings at December $31,2021$:

Common stock $($par $$1$; issued and outstanding, $550,000$ shares$)$

Preferred stock, $9\%($par $$10$; issued and outstanding, $21,500$

shares$)$

Retained Earnings

On December $31,2021,$ the board of directors is considering the distribution of a cash dividend to the common and preferred

stockholders. No dividends were declared during $2019$ or $2020.$ Three independent cases are assumed:

Case A: The preferred stock is noncumulative; the total amount of $2021$ dividends would be $$35,000.$

Case B: The preferred stock is cumulative; the total amount of $2021$ dividends would be $$35,000.$ Dividends were not in

arrears prior to $2019.$

Case C: Same as Case B$,$ except the amount is $$80,000.$

Required:

$1-$a$.$ Compute the amount of dividends in total payable to each class of stockholders if dividends were declared as described in each

case.

$1-$b$.$ Compute the amount of dividends per share payable to each class of stockholders if dividends were declared as described in

each case.

Complete this question by entering your answers in the tabs below.

Req $1A$

Compute the amount of dividends in total payable to each class of stockholders if dividends were declared as described in

each case.