Snow Inc. has the following items in its current balance sheet:

Common Stock 10,000,000 shares authorized with 2,000,000 issued$6,000,000

Capital Surplus $24,000,000

Treasury Stock on Common 100,000 shares $6,000,000

Cumulative Preferred Stock 500,000 authorized

[2%]$100 par $8,000,000

Treasury Stock on Preferred Stock 100,000 shares $6,000,000

Retained Earnings $60,000,000

1. Snow Inc. wishes to announce a total cash dividend of $40,000,000.How is this dividend to be split between the common and preferred stockholders?
2. What is the dividend per share for common and preferred after the dividend distribution from question 1 above?
3. Suppose Snow Inc. was three years in the arrears in paying dividends to the preferred stockholders, then what is the dollar amount of the preferred and common shareholder dividend?
4. How many Snow common stock shares are truly outstanding?
5. If Snow Inc. announces a 2 for 1 stock split of the cumulative preferred, then what is the new total number of shares outstanding after the preferred stock split?
6. If Snow Inc. were to provide for a 5% common stock dividend, then how many new shares are to be mailed to existing shareholders
7. Assume in question [6] the market price of the common stock was $15 at the time of the stock dividend. Provide journal entry to record the stock dividend?
8. Using the equity portion of Snow Inc. balance sheet above, determine the amount of the total equity in Snow Inc.Assume this question ignores the results of questions [1-7] above.
9. What is the impact of the common and preferred cash dividend [$40,000,000 as per question 1 above] on the current balance sheet of Snow Inc.?
10. What is the impact of the 20% common stock dividend on the balance sheet? Assume this question ignores questions [1-9] above.