Fashonista Skincare has 10,000 shares of 3%, $20 par value preferred stock and 90,000 shares of $2 par common stock outstanding. During a three-year period, Fashionista declared and paid cash dividends as follows: 2010, $3,000; 2011, $13,000; and 2012, $17,000.
Requirements
1. Compute the total dividends to preferred and to common for each of the three years if
a. preferred is noncumulative.
b. preferred is cumulative.