Nala Company has two classes of shares that were both issued on January 1,2010:
Class A,$10 par value,8% preferred shares,275,000 shares issued and outstanding;
Class B,no par value common shares issued at $30/share,1,300,000 shares issued and outstanding.
Due to challenging start-up problems in 2010 and 2011 there were no dividends paid; in 2012 dividends of $8,000,000 were paid; and,for 2013,dividends paid totaled $16,000,000.
Requirement:
How much was the amount of dividends paid to preferred and common shares in 2010 to 2013? First assume that the preferred shares are non-cumulative,then assume that they are cumulative.

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The Answer of Nala Company has two classes of shares that were both issued on January 1,2010:
Class A,$10 par value,8% preferred shares,275,000 shares issued and outstanding;
Class B,no par value common shares issued at $30/share,1,300,000 shares issued and outstanding.
Due to challenging start-up problems in 2010 and 2011 there were no dividends paid; in 2012 dividends of $8,000,000 were paid; and,for 2013,dividends paid totaled $16,000,000.
Requirement:
How much was the amount of dividends paid to preferred and common shares in 2010 to 2013? First assume that the preferred shares are non-cumulative,then assume that they are cumulative.

Nala Company Has Two Classes of Shares That Were Both