On January 1, 1994, the retained earnings of Quigley Company were \(\$ 432,000\). Net income for the succeeding five years was as follows:

The outstanding capital stock of the corporation consisted of 2,000 shares of preferred stock with a par value of \(\$ 480\) per share that pays a dividend of \(\$ 19.20\) per year and 8,000 shares of no-par common stock with a stated value of \(\$ 240\) per share. No dividends were in arrears as of January 1, 1994 .
Prepare schedules showing how the net income for these five years was distributed to the two classes of stock if in each of the years the entire current net income was distributed as dividends and the preferred stock was:

a. Cumulative.

b. Noncumulative.

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1994. $288,000 1995.. 216,000 1996 4,800 1997. 48,000 1998. 264,000