Hello,

I am having trouble understanding how the answer was derived in the "Dividends Declared" section for "Common stock". I have highlighted it in yellow(see attachment). Can you please explain to me how the answer is derived? Thank you.

Excel File Edit View Insert Format Tools Data Window Help 53% Wed 10:52 PM Q QE . . . xIs.xIs fx 87% Q Search in Sheet A Home Layout Tables Charts SmartArt Formulas Data Review A # T Edit Font Alignment Number Format Cells Themes Fill Arial MT - 12 - A A abc Ed Wrap Text General Normal Clear BIU Merge * % 00 D.0 Conditional Bad Paste Formatting Insert Delete Format Themes Aa Print_Area : 3 0 fx H M O Q R STOCKEQ Statement of Stockholder's Equity Chen Corporation Statement of Stockholders' Equity For the Year Ended December 31, 2013 Preferred Common Stock Stock Add'l $100 Par $2 Par Paid-in Retained Treasury Value Value Capital Earnings Stock Total 13 Balance, 12/31/12 $10,000 $100,000 $97,000 $215,000 ($23,200) $398,800 14 Common stock issued 3,600 5,400 9,000 15 Treasury stock bought 20,00 20,000 16 Treasury stock sold -400 3,200 2,800 17 Net income -16,000 -16,00 18 Dividends declared: 19 Preferred -2,400 -2,400 20 Common -16,020 -16,020 21 Balance, 12/31/12 $30,000 $103,600 $102,000 $180,580 ($20,000) $396, 180 23 24 25 26 27 28 29 30 31 32 33 34 35 36 14 4 - StockEq2 Dividend Calculations #3 Equity Section of BS StockEq4 Chart + Normal View Ready Sum= 1584720 6