Ritz Company had the following stock outstanding and Retained Earnings at December 31, 2013:

Common stock (par $1; outstanding, 500,000 shares) ........................ $500,000

Preferred stock, 8% (par $10; outstanding, 21,000 shares) .................... 210,000

Retained earnings ..................................................................... 900,000

On December 31, 2013, the board of directors is considering the distribution of a cash dividend to the common and preferred stockholders. No dividends were declared during 2011 or 2012.

Three independent cases are assumed:

Case A: The preferred stock is noncumulative; the total amount of 2013 dividends would be $30,000.

Case B: The preferred stock is cumulative; the total amount of 2013 dividends would be $30,000. Dividends were not in arrears prior to 2011.

Case C: Same as Case B, except the amount is $75,000.

Required:

1. Compute the amount of dividends, in total and per share, payable to each class of stockholders for each case. Show computations. Round per-share amounts to two decimal places.

2. Complete the following schedule, which compares case C to a 100 percent stock dividend on the outstanding common shares when the stock price was $50.

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Amount of Dollar Increase (Decrease) Stock Dividend Case C (Cash Dividend) Item Assets Liabilities Stockholders' Equity . $ . %24 %24