Can you help me understand how to do this? I am very confused.

BZO Loon-403014: 11 12 13 14 15 28 29 30 31 32 21 When Crossetl Corporation was organized in January Year 1, it immediately issued 4,000 shares of $50 par, 6 percent, cumulative preferred stock and 50,000 shares of $20 par common stock. Its earnings history is as follows: Year 1, net loss of $35,000; Year 2, net income of $125,000; Year 3, net income of $215,000. The corporation did not pay a dividend in Year 1' Required [Use the cells from the given Information above to complete this question.) a. How much is the dividend arrearage as ofJanuary 1, Year 2? 7 $123000 b. Assume that the board of directors declares a $25,000 cash dividend at the end of Year 2 [remember that the Year 1 and Year 2 preferred dividends are due). How will the dividend be divided between the preferred and common stockholders? (Use the cells from the given Information and from Required A to complete this question.) [Amounts to be deducted should be indicated with a minus sign.) Total dividend declared Year 1 Arrearage Year 2 Preferred dividends Available for common Distributed to common Total distribution 4, 000 535,000 525 , 000 550 $125,000 6% $215,000 50,000 $20 Students: The scratchpad area is for you to do any additional work you need to solve this question or can be used to show your work. 'Nothing in this area will be graded, but it will be submitted with your assignment