PA11-4 (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, 450,000 shares)	$ 450,000
Preferred stock, 8% (par $10; issued and outstanding, 20,500 shares)	205,000
Retained Earnings	895,000

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 $25,000.
Case B:	The preferred stock is cumulative; the total amount of 2021 dividends would be $25,000. Dividends were not in arrears prior to 2019.
Case C:	Same as Case B, except the amount is $70,000.

Required:

1. 1-a. Compute the amount of dividends in total payable to each class of stockholders if dividends were declared as described in each case.
2. 1-b. Compute the amount of dividends per share payable to each class of stockholders if dividends were declared as described in each case.

(layout for 1A and 1B below)

	case A	case B	case C
preffered
common
total