E11-10 (Algo) Computing Dividends on Preferred Stock and Analyzing Differences [LO 11-3, LO 11-4] The records of Paloma Supplies reflected the following balances in the stockholders' equity accounts at December 31, 2021: Common stock, par $12 per share, 42,000 shares outstanding. Preferred stock, 8 percent, par $14.00 per share, 6,310 shares outstanding. Retained earnings, $224,000. On January 1, 2022, the board of directors was considering the distribution of a $62,400 cash dividend. No dividends were paid during 2020 and 2021. Required: 1. Determine the total and per-share amounts that would be paid to the common stockholders and to the preferred stockholders under two independent assumptions: a. The preferred stock is noncumulative. b. The preferred stock is cumulative. 2. Why might the dividends per share of common stock be different for noncumulative preferred stock and cumulative preferred stock?