How much preferred and common stockholders receive


Problem: The stockholders' equity section of Lemay Corporation shows the following on December 31, 2018:

Preferred stock-5%, $100 par, 5,500 shares outstanding $550,000

Common stock-$10 par, 61,000 shares outstanding 610,000

Paid-in capital in excess of par 200,000

Retained earnings 108,700

Total stockholders' equity$1,468,700

Assuming that all of the company's retained earnings are to be paid out in dividends on 12/31/18 and that preferred dividends were last paid on 12/31/16, show how much the preferred and common stockholders should receive if the preferred stock is cumulative and fully participating.

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Accounting Basics: How much preferred and common stockholders receive
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