Skysong Inc. started its operations with the following share capital:

• 50,000, $3.00 preferred shares, and
• 243,600 common shares.

For its first five years of operations, dividends were declared and paid as follows. Year 1$115,200 Year 2$108,200 Year 3$200,800 Year 4$150,000 Year 5$267,500

Determine how the dividends from each year would be allocated if the preferred shares were noncumulative.

		Allocation
				Noncumulative Preferred
Year		Dividend Paid		Entitlement		Paid		Common
1		$		$		$		$
2		$		$		$		$
3		$		$		$		$
4		$		$		$		$
5		$		$		$		$
				$		$		$

Determine how the dividends from each year would be allocated if the preferred shares were cumulative.

		Allocation
				Cumulative Preferred
Year		Dividend Paid		Entitlement		Paid		Arrears		Common
1		$		$		$		$		$
2		$		$		$		$		$
3		$		$		$		$		$
4		$		$		$		$		$
5		$		$		$		$		$
						$				$