Refer to the allocation of dividends for Pinecraft Industries Inc. Answer these questions about Pinecraft's cash dividends:

1. How much in dividends must Pinecraft declare each year before the common shareholders receive any cash dividends for the year?

2. Suppose Pinecraft, declares cash dividends of \(\$ 300,000\) for 2020 . How much of the dividends go to preferred? How much go to common?

3. Are Pinecraft's preferred shares cumulative or non-cumulative? How can you tell?

4. Pinecraft passed the preferred dividend in 2018 and 2019. Then in 2020, Pinecraft declares cash dividends of \(\$ 800,000\). How much of the dividends go to preferred? How much go to common?