As the owner of an S-corp you must always first pay yourself a reasonable (fair market) salary that reflects the work you actually do. That includes tax withholding, submission of form 941 or 944, state tax withholding and submission of quarterly or annual state tax withholding forms, and issuing a W-2. There are payroll companies that will do this for a fee if you can't or don't want to take the time to learn to do it yourself. The payroll expense is a deductible business expense.
Then, if there are additional profits after paying yourself a fair salary, those profits can be distributed as a profits, dividends, or whatever.
In your example, if your business has a "gross" profit of $100,000 and pays a $40,000 salary, then the business will show a profit of $60,000 (because the $40,000 is an additional expense). You would get a K-1 showing distribution of profits and a W-2 showing $40,000 of wages.
You can't arbitrarily decide the split between profit and salary, it depends on the fair market value of what you do. Suppose you hired an unrelated person to run your business, so you paid them a salary and only collected the profits yourself. How much would have to pay in the current business market and based on the skills and knowledge and time involved? Under-paying S-corp wages is a key audit target area (because under-paying wages means you pay less social security and medicare tax, among other things).
