Total shareholders' equity decreased.

Question $5(1$ point$)$

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If preferred shares are noncumulative, then:

The preferred shareholders are entitled to current and arrears of dividends before common shareholders can receive dividends.

Cash dividends not declared in prior years are lost permanently.

The preferred shareholders are only entitled to a specific percent of the cash dividends, regardless of the amount declared.

Prior years' cash dividends must be paid to the preferred shareholders before any dividends may be paid to the common shareholders.