EX 12-2 Dividends per share - I dont understand how third year is $6000 plus the $50,000? im sorry i only showed the question, i will show the rest. i see that for year one and year two it is zero because it is more than the distribution, what i do not understand is where the $6,000 in the 3rd year is from? the calculation.

Step 2 of 2 A Calculation of dividend per share: Year 1 Year 2 Year 3 Year 4 S36,000 $58,000 $75,000 $124,000 Less Prefered Dividend (40,000 shares) Year 1-40.000x 125x1%-S50,000 (S50,000-36,000 $14,000) Year2 ($14,000+$50,000) Common dividend (100 Dividends per share: 36000 SO S50 $56,000 19,000 S 50,000 74,000 S0 S (S36,000/40,000)(S58,000/40,000 (S56,000/40,000(S50,000/40,000) S1.25 ($19,000/100,000) ($74,000/100,000) S0.74 Preferred stock 0.90 S1.45 $1.40 Common stock None None S0.19 But, in the first year the company declared only $ 36,000 as dividends. The amount is not sufficient to pay the dividends to preference share holders. Since the shares are cumulative preference shares, the balance dividends can be paid in the next year along with the next year's dividends. Under cumulative preference shares, the unpaid dividend is accumulated till it is paid In the first year dividend per preferred stock - $ 36,00040,000 shares - $0.90 per share Lightfoot Inc. first should pay the dividends to cumulative preferred stockholders @1%. The balance amount has to be paid as dividends to common stockholders In the first year and second year there are no dividends to the common stockholders