Cullen Distribution Corporation's Contributed Capital Section of Its Balance Sheet $\begin{array}{lrr} \text { Preferredstock: \$10 par, 4\% } &\$650,000\\ \text { Common stock: \( \$ 8 \) par } &400,000\\\end{array}$

question 14

Essay

Cullen Distribution Corporation's contributed capital section of its balance sheet follows:
$\begin{array}{lrr} \text { Preferredstock: \$10 par, 4\% } &\$650,000\\ \text { Common stock: \( \$ 8 \) par } &400,000\\\end{array}$


During the last two years, Cullen Distribution Corporation did not declare any dividends to its shareholders. This year, Cullen declares and pays total dividends of $100,000. Calculate separately the dividends paid to preferred and common shareholders if the preferred stock is cumulative.

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