Apple began business on Jan. 1 1994 and issued:

1000 shares of 100 par 6% preferred stock for $100,000

50,000 shares of $1 par common stock for $250,000

In 1994, Apple reported an income of $183,000

In 1995, Apple reported income of $176,000

In 1994, Apple did not pay any dividends

In 1995, Apple paid $68,000 of dividends

Part 1: If the preferred stock is cumulative non-participating, how is the dividend divided between common and preferred stock? What is Apples EPS for 1994 and 1995?

Part 2: If the preferred stock is *non-cumulative* non-participating, how is the dividend divided between common and preferred stock? What is Apples EPS for 1994 and 1995?

Please show work so I can learn the process. Thanks so much!