P$11-8($Algo$)$ Comparing Stock and Cash Dividends LO$11-4,11-6,11-8$

Chicago Company reported the following information at the end of the current year:

Common stock $($$$10$ par value; $43,000$ shares outstanding$)$$ $430,000$Preferred stock, $10\%($$$10$ par value; $8,800$ shares outstanding$)88,000$Retained earnings$285,000$

The board of directors is considering the distribution of a cash dividend to the two groups of stockholders. No dividends were declared during the previous two years. Assume the three cases below are independent of each other.

Case A: The preferred stock is noncumulative; the total amount of all dividends is $$35,000.$

Case B: The preferred stock is cumulative; the total amount of all dividends is $$26,400.$

Case C: The preferred stock is cumulative; the total amount of all dividends is $$90,800.$

Required:

$1.$ Compute the amount of dividends, in total and per share, that would be payable to each class of stockholders for each case.

$2.$ Assume Chicago Company issued a $20$ percent common stock dividend on the outstanding shares when the market value per share was $$32.$ Fill in the table below to show how the stock dividend and Case C would affect Total Assets, Liabilities, and Stockholders' equity.