480 CHAPTER 10 STOCKHOLDERS' EQUITY UL >> OBJECTIVES 2, 3 10-36 Cumulative Dividends In recent years, the McFarlane Company had severe cash flow problems. In 20X0, the company suspended payment of cash dividends on common stock. In 20X1, it ceased payment on its $3 million par value 6% cumulative preferred stock. No common or preferred dividends were paid in 20X1 or 20X2. In 20X3, McFarlane's board of directors decided that $1.0 million was available for cash dividends