Assume that on December 31, 2016, Potaw Company has outstanding 8,000 shares of $15 par, 6% cumulative, preferred stock and 40,000 shares of $5 par common stock. Potaw was unable to declare a dividend in 2014 or 2015 but wants to declare a $75,000 dividend for 2016.
REQUIRED:
1. How much cash is distributed to preferred stockholders?
2. How much cash is distributed to common stockholders?
3. What is the dividend per share to preferred stock?
4. What is the dividend per share to common stock?

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The Answer of Assume that on December 31, 2016, Potaw Company has outstanding 8,000 shares of $15 par, 6% cumulative, preferred stock and 40,000 shares of $5 par common stock. Potaw was unable to declare a dividend in 2014 or 2015 but wants to declare a $75,000 dividend for 2016.
REQUIRED:
1. How much cash is distributed to preferred stockholders?
2. How much cash is distributed to common stockholders?
3. What is the dividend per share to preferred stock?
4. What is the dividend per share to common stock?

Assume That on December 31, 2016, Potaw Company Has Outstanding