Exe 11.7 The number of issued and outstanding shares of both preferred and common stock have been the

same for the last two years. Dividends on preferred stock are 8 percent of par value and have been

paid each year the stock was outstanding except for the immediate past year. In the current year,

management declares a total dividend of $60,000. Indicate the amount that will be paid to both

preferred and common stockholders assuming (a) the preferred stock is not cumulative and (b) the

preferred stock is cumulative.

Three events pertaining to Lean Machine Co. are described as follows.

a. Issued common stock for cash.

b. The market value of the corporation's stock increased.

c. Declared and paid a cash dividend to stockholders.

Indicate the immediate effects of the events on the financial measurements in the four column

headings listed. Use the code letters I for increase, D for decrease, and NE for no effect.