Nala Company Has Two Classes of Shares That Were Both

question 2

Essay

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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Definitions:

General Bodily Arousal

A state of physical and psychological alertness, typically involving increased heart rate and energy, often as a response to stimuli or stress.

Specific Emotion

A distinct feeling that arises in response to a particular event or circumstance, identifiable by its unique psychological and physiological patterns.

Stanley Schachter

An American psychologist best known for his development of the two-factor theory of emotion, which considers both physiological arousal and cognitive labeling.

James-Lange Theory

A theory of emotion that proposes emotions occur as a result of physiological reactions to events.