Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends:

Year 1:	$10,000
Year 2:	45,000
Year 3:	90,000

Determine the dividends in arrears for preferred stock for the second year.

a.$0

b.$25,000

c.$30,000

d.$10,000

Which of the following types of transactions would be reported as a cash flow from investing activity on the statement of cash flows?

a.issuance of bonds payable

b.purchase of long-term assets

c.purchase of treasury stock

d.issuance of common stock