The Red Brick Company has the following stocks outstanding:

• Preferred stock with 6,000 shares outstanding which pays $3.00 per shares
• Common stock, par value $0.01 with 24,000 shares outstanding

Assume that the Companys Board of Director declared a total dividend of $14,000 to be paid in the year 2019 and a total dividend of $68,000 to be paid in the year 2020.

Required:

1. Calculate the total dividend to be paid to the Preferred shareholders and the Common shareholders in 2019 assuming that the Preferred stock is Cumulative
2. Calculate the total dividend to be paid to the Preferred shareholders and the Common shareholders in 2019 assuming that the Preferred stock is Non-Cumulative