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Determining Dividend Distributions Urban Inc. had the following capital stock outstanding. Common, $1 par, 12,000 shares issued and outstanding $12,000 8% Preferred, $10 par, 8,000 shares issued and outstanding $80,000 In 2020, Urban Inc. distributes $32,000 in cash dividends to shareholders. a. If the preferred stock is cumulative and dividends are in arrears for the past three years, what is the cash distribution to common shareholders and preferred shareholders? Preferred Common Cash distribution $ b. What is the cash distribution to common shareholders and preferred shareholders if the preferred stock is noncumulative? Preferred Common Cash distribution $ Check Save Answers Next > Previous