10, A company has 1,000 shares of SSO par value, 4.5% cumulative and nonparticipating preferred stock and 10,000 shares of $10 par value common stock outstanding. The company paid total cash dividends of $1,000 in its first year of operation. The cash dividend that must be paid to preferred stockholders in the second year before any A) $2,250. B) $4,500. C) $3,500. D) $1,250. E) $1,000. 11. The following data are available for Nichols Corporation Sale of land Sale of equipment Issuance of common stock Purchase of equipment Payment of cash dividends $200,000 100,000 140,000 60,000 120,000 Net cash provided by investing activities is: A) $260,000. B) $380,000. C) $240,000. D) $300,000. 12. Morgan Company purchased 2,000 shares of Asta's common stock for $143,000 as a long-term investment. This investment is considered available-for-sale. The par value of the stock was $1 per share. Morgan paid $375 in commissions on the transaction. The entry to record the transaction would include a: A) Debit to Long-Term Investments for $143,375. B) Credit to Common Stock for $2,000. C) Debit to Long-Term Investments for $143,000 D) Credit to Common Stock for $143,000. E) Credit to Common Stock for $143,375. Page 3