problem: A company was organized on January 1, 2001 and issued the following shares of stock:

1)            1,500 shares of $100 par value, 10% non-participating preferred stock.

2)            15,000 shares of $20 par value common stock.

All shares were issued and outstanding throughout 2001, 2002 and 2003.  The company declared and paid a cash dividend in each of those years as follows:

                2001 - $10,000     2002 - $36,000     2003 - $60,000

Required:

1)      Compute the dividends paid to each class of stock in each of those years suppose the preferred stock is non-cumulative.  [Use the matrix format listed below.]

2)      Compute the dividends paid to each class of stock in each of those years suppose the preferred stock is cumulative.  [Use the matrix format listed below.]

3)      Show your work.  Please show your supporting calculations and label them to indicate which numbers in the matrix they are supporting.

4)      Use the given matrix format to complete the project: