Use the income statement above to answer the following questions. a. In 2019, Ciprianos paid $1,750,000 in preferred stock dividends and it had 1.5 million shares of common stock outstanding. Calculate 2019 earnings available to common stockholders and earnings per share. b. If Cipriano paid annual dividends of $1.25 per share of common stock, what would be the changes to retained earnings.

Net profit after taxes = $5,600,100 Working: $48,750,000 $28,450,000 $20,300,000 Cipriano's Income Statement For The Year Ended Dec 31., 2019 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: Selling, general and administrative expenses $7,425,000 Depreciation Expenses $2,100,000 Lease Expenses $1,400,000 Total Operating Expense Operating Profit Interest Expense Net Profit Before Tax Taxes at 34% Net Profit after Taxes $10,925,000 $9,375,000 $890,000 $8,485,000 $2,884,900 $5,600,100