as follows:

$($Click the icon to view the data.$)$

Answer these questions about Pinecraft's cash dividends:

Requirements

Data table

Requirement $1.$ How much in dividends must Pinecraft declare each year before the common shareholders receive any cash dividends for the year?

Pinecraft Industries must declare dividends of $$150000$ each year before the common shareholders receive any cash dividends for the year.

Requirement $2.$ Suppose Pinecraft declares cash dividends of $$300,000$ for $2020.$ How much of the dividends go to preferred? How much go to common?

Requirement $3.$ Are Pinecraft's preferred shares cumulative or non$-$cumulative? How can you tell?

Pinecraft Industries's preferred shares are cumulative because preferred shares are cumulative unless they are stated as non$-$cumulative.