alternate problem a on 2005 january 1 the retained earnings of quigley company were 625215

Alternate problem A On 2005 January 1, the retained earnings of Quigley Company were USD 432,000. Net income for the succeeding five years was as follows:

2005	$288,000
2006	216,000
2007	4,800
2008	48,000
2009	264,000

The outstanding capital stock of the corporation consisted of 2,000 shares of preferred stock with a par value of USD 480 per share that pays a dividend of USD 19.20 per year and 8,000 shares of no-par common stock with a stated value of USD 240 per share. No dividends were in arrears as of 2005 January 1. Prepare schedules showing how the net income for these five years was distributed to the two classes of stock if in each of the years the entire current net income was distributed as dividends and the preferred stock was:

a. Cumulative.

b. Noncumulative.