Below are the 2007 and 2008 year-end balance sheets for Tran Enterprises:Assets :20082007Cash$ 200,000$ 170,000Accounts receivable864,000700,000Inventories2,000,0001,400,000Total current assets$3,064,000$2,270,000Net fixed assets6,000,0005,600,000Total assets$9,064,000$7,870,000Liabilities and equity:Accounts payable$1,400,000$1,090,000Notes payable1,600,0001,800,000Total current liabilities$3,000,000$2,890,000Long-term debt2,400,0002,400,000Common stock3,000,0002,000,000Retained earnings664,000580,000Total common equity$3,664,000$2,580,000Total liabilities and equity$9,064,000$7,870,000The firm has never paid a dividend on its common stock, and it issued $2,400,000 of 10-year, non-callable, long-term debt in 2007. As of the end of 2008, none of the principal on this debt had been repaid. Assume that the companyâ€™s sales in 2007 and 2008 were the same. Which of the following statements must be CORRECT?a. The firm increased its short-term bank debt in 2008.b. The firm issued long-term debt in 2008.c. The firm issued new common stock in 2008.d. The firm repurchased some common stock in 2008.e. The firm had negative net income in 2008.
https://trustedpaperwriters.com/wp-content/uploads/2019/12/157544039158860773-300x54.png 0 0 Steve Kamau https://trustedpaperwriters.com/wp-content/uploads/2019/12/157544039158860773-300x54.png Steve Kamau2021-10-14 05:52:322021-10-14 05:52:32Below are the 2007 and 2008 year-end balance sheets for Tran Enterprises:Assets :20082007Cash$ 200,0