Select the correct answer. Elem Inc. has issued 3,000, 8% preferred stock at $10 per stock and 10,000 common stock issued at $10 par value. The corporation's directors
declared that it would pay dividends of 5% at the end of the year. How much will the preferred stock holders receive?

A. $5,000
B. $2,400
C. $8,000
D. $1,500

On february 10, 2014, after issuance of its financial statements for 2013, higgins company entered into a financing agreement with cleveland bank, allowing higgins company to borrow up to $6,000,000 at any time through 2016. amounts borrowed under the agreement bear interest at 2% above the bank's prime interest rate and mature two years from the date of loan. higgins company presently has $2,250,000 of notes payable with star national bank maturing march 15, 2014. the company intends to borrow $3,750,000 under the agreement with cleveland and liquidate the notes payable to star national bank. the agreement with cleveland also requires higgins to maintain a working capital level of $9,000,000 and prohibits the payment of dividends on common stock without prior approval by cleveland bank. from the above information only, the total short-term debt of higgins company as of the december 31, 2013 balance sheet date is