Holt Company paid out cash dividends at the end of each year as follows:

Year                             Dividends
2018 ........................    $250,000
2019 ........................    $325,000
2020 ........................    $400,000

Required

a. Assume that Holt had 250,000 common shares and 10,000, $7, non-cumulative preferred shares. How much cash would be paid out in 2018, 2019, and 2020 to each class of shares?

b. Assume that Holt had 100,000 common shares, and 5,000, $4, cumulative preferred shares that were three years in arrears as at January 1, 2018. How much cash would be paid out in 2018, 2019, and 2020 to each class of shares?