2. Prepare the shareholders equity section of nar's statem position as at December 31, the end of the year. AP10-4 Comparing Stock and Cash Dividends (P10-4) LO10-4, 10-6 Ritz Company had the following shares outstanding and retained earnings at December 31, year 3: Preferred shares, 8% (outstanding, 9,000 shares) Common shares (outstanding, 5,000 shares) Retained earnings $225,000 800,000 720,000 The board of directors is considering the distribution of a cash dividend to the two groups of shareholders. No dividends were declared during the previous two years. Three independent cases are assumed: Case A: The preferred shares are non-cumulative; the total amount of dividends is $25,000. Case B: Case C: The preferred shares are cumulative; the total amount of dividends is $36,000. Same as Case B, except the amount is $77,500. Required: 1. Compute the amount of dividends, in total and per share, payable to cach class of shareholders for cach case. Page 605 2. Refer to Case C and assume that the company issued a 10 percent common stock dividend on the outstanding common shares when the market value per share was $47. Complete the following comparative schedule for common shares only, including an explanation of the differences. Item Assets Liabilitics Amount of Dollar Increase (Decrease) Cash Dividend-Case C Stock Dividend $ $