Colson Inc. declared a $320,000 cash dividend. It currently has 12,000 shares of 7%, $100 par value cumulative preferred stock outstanding. It is one year in arrears on its preferred stock. How much cash will Colson distribute to the common stockholders?

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First, calculate the total annual dividend for the preferred stock: 12,000 shares * $100 par value * 7% = $84,000. Since it is one year in arrears, this amount is doubled for the current and previous year: $84,000 * 2 = $168,000. Subtracting this from the total dividend declared, $320,000 - $168,000 = $152,000, which is the amount available for common stockholders.