[The following information applies to the questions displayed below.]
Raphael Corporation's balance sheet shows the following stockholders' equity section.
Preferred stock-5% cumulative, $ par value, 1,000 shares authorized, issued, and outstanding
Common stock-$ par value, 4,000 shares authorized, issued, and outstanding
Retained earnings
Total stockholders' equity
$ 50,000
80,000
150,000
$ 280,000
2. If two years' preferred dividends are in arrears at the current date and the board of directors declares cash dividends of $11,500,
compute the total amount paid to (a) preferred shareholders and (b) common shareholders.
Total amount paid to the preferred shareholders
Total amount paid to the common shareholders