PA11-4 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, 2018 Common stock (par $1; outstanding, 450,000 shares) Preferred stock, 8% (par $10; outstanding, 20,500 shares) Retained Earnings $ 450,000 205,000 895,000 On December 31, 2018, the board of directors is considering the distribution of a cash dividend to the common and preferred stockholders. No dividends were declared during 2016 or 2017. Three independent cases are assumed Case A: The preferred stock is noncumulative; the total amount of 2018 dividends would be $25,000. Case B: The preferred stock is cumulative; the total amount of 2018 dividends would be $25,000. Dividends were not in arrears prior to 2016. Case C: Same as Case B, except the amount is $70,000. Required: 1-o. 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