Question 3 Sweet Company's outstanding stock consists of 1,000 shares of cumulative 5% preferred stock with a $100 par value and 10,000 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividends Declared & Paid Year 1 $2,000 Year 2 $ 6,000 Year 3 $ 32,000 The amount of dividends paid to preferred and common shareholders in year 3 is: $32,000 preferred; $0 common. $5,000 preferred; $27,000 common. $7,000 preferred; $25,000 common. $15,000 preferred; $17,000 common. 8.4 pts O $0 preferred; $32,000 common.

Sweet Company's outstanding stock consists of 1,000 shares of cumulative 5% preferred stock with a $100 par value and 10,000 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. The amount of dividends paid to preferred and common shareholders in year 3 is: $32,000 preferred; $0 common. $5,000 preferred; $27,000 common. $7,000 preferred; $25,000 common. $15,000 preferred; $17,000 common. $0 preferred; $32,000 common