Cheyenne Company manufactures backpacks. During 2022, Cheyenne issued bonds at 12% interest and used the cash proceeds to purchase treasury stock. The following financial information is available for Cheyenne Company for the years 2022 and 2021. 2022 2021 Sales revenue Net income Interest expense $11,250,000 $11,250,000 2,800,000 3,125,000 750,000 210,000 Tax expense 837,500 937,500 Dividends paid on common stock 1,335,000 1,539,000 Dividends paid on preferred stock 450,000 450,000 Total assets (year-end) 18,125,000 21,093,750 Average total assets 19,609,375 26,644,500 Total liabilities (year-end) 9,000,000 4,500,000 Avg. total common stockholders' equity 14,100,000 21,150,000