Hi, I just need some help with this question, my question has to do with cumulative and non-cumulative preferred shares.

A company issues 20,000 shares of $2 preferred shares and 180,000 common shares. The company began operations and issued both types of shares on January 1 2011. It has declared and paid dividends each year as shown below:

Need to calculate the total dividends distributed to each class of shareholder, assuming a) and assuming b) below:

a) Cumulative Preferred Shares b) Non-Cumulative Preferred Shares

Dividends Paid Preferred Common Preferred Common

2011: $40,000

2012: $90,000

2013: $150,000