QS $11-12($Algo$)$ Dividend allocation between classes of shareholders LO C$2$

Stockholders' equity of Ernst Company consists of $86,000$ shares of $$5$ par value, $10\%$ cumulative preferred stock and

$310,000$ shares of $$1$ par value common stock. Both classes of stock have been outstanding since the company's inception.

Ernst did not declare any dividends in the prior year, but it now declares and pays a $$155,000$ cash dividend at the current

year$-$end.

Determine the amount distributed to each class of stockholders for this two$-$year$-$old company.

QS $12-6($Algo$)$ Indirect: Computing cash from operations LO P$2$

Use the information above to calculate cash flows from operating activities using the indirect method.

Note: Amounts to be deducted should be indicated by a minus sign.

Cash flows from onerating activities: