cumulative preference shares are those shares which get dividends for the current year and for the all previouse years if they were not paid due to the bad position of the compnay. suppose compay was suppose to pay dividends @ 10% every year to cumulative shares holders but could not pay fro two years due to bad financial position, and in the current year company is stable and willing to pay, so company will pay previouse + current year dividends to cumulative share holders, if it was non-cumulative share hoders compay would not pay all dividend, but it would pay only current year dividend. this is the difference between cumulative and non cumulative shares with respect to dividend payment.

conculsion:

cumulative gets all dividends if not paid earlier due to financail crises(previouse+ current)

non cumulative gets only current dividend and not previouse dividend if not paid due to financial crises ( only current year dividend and all previouse are not paid)

Earnings = Net Income. Cumulative Earnings over three years is the net income of each year added together.

Year 1 Net Income

Year 2 Net Income

+ Year 3 Net Income

= Cumulative Earnings

37+9495094059

In a footnote