Problem 8-21A (Static) Cash dividends: Common and preferred stock LO 8-3, 8-6 Nowell Inc. had the following stock issued and outstanding at January 1, Year 2 : 1. 150,000 shares of no-par common stock. 2. 30,000 shares of $50 par, 4 percent, cumulative preferred stock. (Dividends are in arrears for one year, Year 1 .) On March 8, Year 2, Nowell declared a $175,000 cash dividend to be paid March 31 to shareholders of record on March 20 Required What amount of dividends will be paid to the preferred shareholders versus the common shareholders? 1. Issued cumulative preferred stock for cash. 2. Issued common stock for cash. 3. Issued noncumulative preferred stock for cash. 4. Paid cash to purchase treasury stock. 5. Sold treasury stock for an amount of cash that was more than the cost of the treasury stock. 6. Declared a cash dividend. 7. Declared a 2-for-1 stock split on the common stock. 8. Distributed a stock dividend. 9. Appropriated retained earnings. 10. Paid a cash dividend that was previously declared. Required Show the effect of each event on the elements of the financial statements using a horizontal statements model. Use + for increase, for decrease, and leave the cell blank if there is no effect. In the Cash Flow column indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). If an element was not affected by the event, leave the cell blank. The first. transaction is entered as an example. SEQUOLA, INC. Horizontal Statements Model