Sappy Corporation has the following capital stock outstanding:

Common stock - par $1 - 2,700,000 shares.

6% preferred stock, par $100, 3,000 shares. Dividends have not been paid this year or in the past two years (three years total).

A cash dividend of $200,000 was declared and paid at the end of the current year.

1. If the preferred stock is non-cumulative and non-participating:

(a) Total dividends received by the preferred stockholders would be $ _____.

(b) Total dividends received by the common stockholders would be $ ________.

2. Assume the preferred stock is cumulative and non-participating:

(c) Total dividends received by the preferred stockholders would be $ ________.

(d) Total dividends received by the common stockholders would be $ ________.

Now assume the preferred stock is participating. The common shareholders receive a two cent ($.02) per share matching dividend and the shareholders share based on relative par values.

3. If the preferred stock is non-cumulative and participating:

(e) Total dividends received by the preferred stockholders would be $ _____.

(f) Total dividends received by the common stockholders would be $ ________.

4. Assume the preferred stock is cumulative and participating:

(g) Total dividends received by the preferred stockholders would be $ ________.

(h) Total dividends received by the common stockholders would be $ ________.