Ultimate Sportswear has $300,000 of 8% noncumulative, nonparticipating, preferred stock outstanding. Ultimate Sportswear also has $700,000...

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Ultimate Sportswear has $300,000 of 8% noncumulative, nonparticipating, preferred stock outstanding. Ultimate Sportswear also has $700,000 of common stock outstanding. In the company's first year of operation, no dividends were paid. During the second year, the company paid cash dividends of $50,000. This dividend should be distributed as follows: Ultimate Sportswear has $300,000 of 8% noncumulative, nonparticipating, preferred stock outstanding. Ultimate Sportswear also has $700,000 of common stock outstanding. In the company's first year of operation, no dividends were paid. During the second year, the company paid cash dividends of $50,000. This dividend should be distributed as follows: