Nala Company Has Two Classes of Shares That Were Both

Nala Company has two classes of shares that were both issued on January 1,2015:
Class A,$10 par value,8% preferred shares,2,750,000 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 2015 and 2016 there were no dividends paid;in 2017 dividends of $8,000,000 were paid;and,for 2018,dividends paid totaled $16,000,000.
Required:
How much was the amount of dividends paid to preferred and common shares in 2015 to 2018? First assume that the preferred shares are non-cumulative,then assume that they are cumulative.
NC = Non-cumulative
C = Cumulative
P/S = Preferred shares
C/S = Common shares

Correct Answer:

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If preferred shares are non-cumulative,...

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