please explain

7. Given the following for the Vitale Company, the company began operations on 1/1/1. Preferred Stock, 4%, cumulative Common Stock Cash Dividends paid $20,000 $20,000 Year 1 $900 Year 2 $200 Year 3 $1,300 Year 3 Dividends received by the Preferred and Common shareholders will be: Preferred $1.300 Common $0