Metallic Inc. has the following shareholders' equity: (Click the icon to view the data.) Answer these questions about Metallic's dividends: 1. Are Metallic Inc.'s preferred shares cumulative or noncumulative? How can you tell? Assume there are no dividends in arrears. 2. Suppose Metallic Inc. declares cash dividends of $23,000 for 2020. How much of the dividends goes to preferred shares? How much goes to common shares? 3. Suppose Metallic Inc. did not pay the preferred dividend in 2018 and 2019. In 2020, the company declares cash dividends of $23,000. How much of the dividends goes to preferred shares? How much goes to common shares? 1. Are Metallic Inc.'s preferred shares cumulative or noncumulative? How can you tell? Assume there are no dividends in arrears. Metallic's preferred shares are because they are specifically designated as 2. Suppose Metallic Inc. declares cash dividends of $23,000 for 2020. How much of the dividends goes to preferred shares? How much goes to common shares? Metallic's dividend would be divided between preferred and common shares in this manner: Metallic's preferred shares dividend for 2020 Metallic's common shares dividend for 2020 3. Suppose Metallic Inc. did not pay the preferred dividend in 2018 and 2019. In 2020, the company declares cash dividends of $23,000. How much of the dividends goes to preferred? How much goes to common shares? Metallic would allocate the cash dividends of $23,000 as follows: Metallic's preferred shares dividend for 2020 Metallic's common shares dividend for 2020 - X Shareholders' equity Preferred shares, $0.015, cumulative, liquidation value $0.70 55,000 shares authorized, 50,000 shares issued and outstanding $ Common shares, 1,100,000 shares authorized 24,000 and issued and outstanding Retained earnings Total shareholders' equity Print Done 330,000 155,000 $ 509,000