Northern Communications has the following stockholders€™ equity:

Requirements
1. First, determine whether preferred stock is cumulative or noncumulative.
2. Compute the amount of dividends to preferred and to common for 2011 and 2012 if total dividends are $12,200 in 2011 and $55,000 in 2012.
3. What is the average price at which each preferred share sold for? What is the average price at which each common share soldfor?

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NORTHERN COMMUNICATIONS Stockholders' Equity Paid-in Capital: Preferred stock, 6%, $11 par, 150,000 shares authorized 20,000 shares issucd and outstanding Common stock, $3 par, 575,000 sharcs authorized 400,000 shares issucd and outstanding $ 220,000 1,200,000 Paid-in capital in cxcess of par-common 1,000,000 Total paid-in capital 2,420,000 190,000 Retained carnings Total stockholders' cquity $2,610,000