White Corp. has outstanding 25,000 common shares and 6,000 $2.00 cumulative preferred shares. The company has declared no dividends for the past two years but plans to pay $100,000 this year a. Compute the dividends for the preferred and common shares. b. By how much will the dividends reduce Retained Earnings? a. Compute the dividends for the preferred and common shares Preferred Shares: Dividends in arrears Current dividend Total to Preferred Shares Common Shares Common shares dividend Total dividend b. By how much will the dividends reduce Retained Earnings? Dividends will reduce Retained Earnings by $0