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Paid in Capital Preferred stock, 5%, $15 par, 7,000 shares authorized, 5,500 shares issued $82,500 Common stock, $0.30 par, 1,200,000 shares authorized and issued 360,000

Paid in Capital
Preferred stock, 5%, $15 par, 7,000 shares authorized, 5,500 shares issued $82,500
Common stock, $0.30 par, 1,200,000 shares authorized and issued 360,000
Paid-in capital in excess of par-common 400,000
Total paid in capital $842,5000
Retained earnings 260,000
Total stockholders' equity $1,102,500

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1) Is Precious Metal's preferred stock cumulative or noncumulative or noncumulative? How can you tell?

2) Precious Metal declares cash dividends of $25,000 for 2010. How much of the diviends goes to preferred? How much goes to common?

3) Precious Metal passes the preferred dividend in 2011 and 2012. In 203 the company declares cash dividends of $35,000. How much of the dividend goes to preferred? How much goes to common?

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