The year-end balance sheet of Smithfield Products includes the following stockholders' equity section (with certain details omitted): Stockholders' equity: 71/2% cumulative preferred stock, $100 par value, 100,000 shares authorized Common stock, $2 par value, 900,000 shares authorized Additional paid-in capital: Common stock $ 2,400,000 900,000 7,200,000 2,595,000 Total stockholders' equity $13,095,000