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Question - The outstanding capital stock of Pina Corporation consists of 1,900 shares of $100 par value, 8% preferred, and 4,700 shares of $50 par value common.
Assuming that the company has retained earnings of $92,000, all of which is to be paid out in dividends, and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of stock should receive under each of the following conditions.
(a) The preferred stock is noncumulative and nonparticipating.
(b) The preferred stock is cumulative and nonparticipating.
(c) The preferred stock is cumulative and participating.
Indicate whether each of the following cash activities would be reported on the statement of cash flows as
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