3) Sundown Products had the following Stockholder's Equity section in its December 31, 2007 balance sheet: Sundown Products Statement of Stockholders' Equity As of December 31, 2007 Common Stock, $2 par value, 11,000 shares authorized Additional Paid In Capital Common Stock 8468 21,170 Preferred Stock 5% cumulative, $25 par value, 1,000 authorized Additional Paid in Capital Preferred Stock Treasury Stock, 1,236 shares Retained Earnings 11,250 1,350 (8,652) 48,854 82,440 Total Stockholders' Equity Required: (10 points) 1. How many shares of common stock are classified as issued? 2. How many shares of common stock are classified as outstanding? How many shares of preferred stock are outstanding? 4. What was the average selling price of a share of common stock? 5. If $7,500 worth of dividends were declared and paid, how much would go to the preferred stockholders and how much would go to the common stockholders? 6. If $7,500 worth of dividends was declared and $3,000 in preferred dividends was in arrears, how much of the dividend would go to the common shareholder? 3