This problem consists of two parts.

Part I A portion of the Stockholders Equity section of Cailey Corporations balance sheet as of December 31, 2019, appears below. Dividends have not been paid for the years 2017 and 2018. There has been no change in the number of shares of stock issued and outstanding during these years. Assume that the board of directors of Cailey Corporation declares a dividend of $24,030 after completing operations for the year 2019.

Stockholders Equity
Preferred Stock (9% cumulative, $50 par value, 10,000 shares authorized)
At Par Value (1,500 shares issued)	$	75,000
Common Stock (no-par value, with stated value of $10, 50,000 shares authorized)
At Stated Value (14,000 shares issued)		140,000

Required:

1. Compute the total amount of the dividend to be distributed to preferred stockholders.
2. Compute the amount of the dividend to be paid on each share of preferred stock.
3. Compute the total amount of the dividend available to be distributed to common stockholders.
4. Compute the amount of the dividend to be paid on each share of common stock.
5. Compute the amount of dividends in arrears (if any) that preferred stockholders may expect from future declarations of dividends.

Part II Use the information given in Part I to solve this part of the problem. Assume that the board of directors of Cailey Corporation has declared a dividend of $95,850 instead of $24,030 after operations for 2019 are completed.

Required:

1. Compute the total amount of the dividend to be distributed to preferred stockholders.
2. Compute the amount of the dividend to be paid on each share of preferred stock.
3. Compute the total amount of the dividend available to be distributed to common stockholders.
4. Compute the amount of the dividend to be paid on each share of common stock.
5. Compute the amount of dividends in arrears (if any) that preferred stockholders may expect from future declarations of dividends.

Analyze: Assume only Part 1 has transpired. If, in 2018, the board of directors declared a dividend of $48,000, what amount would be paid to preferred stockholders?

Part I
1.	2017 dividend distributed to preferred stockholders
	2018 dividend distributed to preferred stockholders
	2019 dividend distributed to preferred stockholders
2.	Dividend paid per share of preferred stock
3.	Dividend available for common stock distribution
4.	Dividend paid per share of comon stock
5.	Dividend in arrears for preferred stockholders

Part II
1.	2017 dividend distributed to preferred stockholders
	2018 dividend distributed to preferred stockholders
	2019 dividend distributed to preferred stockholders
2.	Dividend paid per share of preferred stock
3.	Dividend available for common stock distribution
4.	Dividend paid per share of comon stock
5.	Dividend in arrears for preferred stockholders

Dividend paid to preferred Stockholders