Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall

Exercise 16

Preferred stock-calculate dividend amounts Laura Marty, Ltd., did not pay dividends on its 9.5%, $100 par value cumulative preferred stock during 2015 or 2016. Since 2009, 175,000 shares of this stock have been outstanding. Laura Marty, Ltd., has been profitable in 2017 and is considering a cash dividend on its common stock that would be payable in December 2017.
Required:
Calculate the amount of dividends that would have to be paid on the preferred stock before a cash dividend could be paid to the common stockholders.