Before a company can pay dividends to the common stockholders, the owners of cumulative preferred stock must receive: A. all dividends in arrears, but not the current year's dividends. B. all dividends in arrears plus the current year's dividends. C. neither the current year's dividends nor dividends in arrears. D. the current year's dividends, but not dividends in arrears.

Xinhong company is considering replacing one of its manufacturing machines. the machine has a book value of $39,000 and a remaining useful life of 5 years, at which time its salvage value will be zero. it has a current market value of $49,000. variable manufacturing costs are $33,300 per year for this machine. information on two alternative replacement machines follows. alternative a alternative b cost $ 115,000 $ 117,000 variable manufacturing costs per year 22,900 10,100 1. calculate the total change in net income if alternative a and b is adopted. 2. should xinhong keep or replace its manufacturing machine