Sand corporation has the following shares outstanding: 10,000 shares of $40 par value, ten percent preferred stock and 50,000 shares of $2 par value common stock. The company has $428,000 of retained earnings. At year-end, the company declares its regular $4 per share cash dividend on the preferred stock and a $3. 20 per share cash dividend on the common stock. Two weeks later, the company pays the dividends.