Question 5

Windsor Inc. started its operations with the following share capital:

		50,700, $3.00 preferred shares, and
		244,400 common shares.

For its first five years of operations, dividends were declared and paid as follows.

Year 1		$121,200
Year 2		$112,800
Year 3		$200,400
Year 4		$152,100
Year 5		$268,400

1)Determine how the dividends from each year would be allocated if the preferred shares were noncumulative.

Year Dividends pay Entitlement Paid Arrears Common

2) Determine how the dividends from each year would be allocated if the preferred shares were cumulative

Year Dividends pay Entitlement Paid Arrears Common