Hello,

I need help with the following questions. I was reading the book ant trying to compute myself, but still could not figure out. Please show your computations.

Everett Company has outstanding 30,000 shares of $50 par value, 6% preferred stock and 70,000 shares of $1 par value common stock. During its first three years in business, it declared and paid no cash dividends in the 1^st year, $310,000 in the 2d year, and $90,000 in the 3d year.

a). If the preferred stock is CUMULATIVE, determine the total amount of cash dividends paid to each class of stock in each of the three years?

b). If the preferred stock is NONCUMULATIVE, determine the total amount of cash dividends paid to each class of stock in each of the three years?