Below are the 2018 and 2019 year-end balance sheets for Walker Inc.:.AssetsCashAccounts receivableInventoriesTotal current assetsNet fixed assetsTotal assetsLiabilities and equityAccounts payableNotes payableTotal current liabilitiesLong-term debtCommon stockRetained earningsTotal common equityTotal liabilities and equity2019$200,000864,0002,000,000$3,064,0006,000,000$9,064,000$2,400,0001,600,000$3,000,0002,400,0002,000,000664,000$2,664,000$9,064,0002018$170,000700,0001,400,000$2,270,0005,600,000$7,870,000$1,090,000800,000$1,890,0002,400,0003,000,000580,000$3,580,000$7,870,000Walker has never paid a dividend on its common share, and it issued $2,400,000 of 10-year non-callable, long-term debt in 2018. As of the end of 2019, none of the principal on this debt had beenrepaid. Assume that the company's sales in 2018 and 2019 were the same. Which of the followingstatements must be correct?O a. Walker issued new common shares in 2019.O b. Walker decreased its short-term bank debt in 2019.c. Walker issued long-term debt in 2019.O d. Walker repurchased some common shares in 2019.

The question is mutiple choice.

Below are the 2018 and 2019 year-end balance sheets for Walker Inc.: Assets Cash Accounts receivable Inventories Total current assets Net fixed assets Total assets Liabilities and equity Accounts payable Notes payable Total current liabilities Long-term debt Common stock Retained earnings Total common equity Total liabilities and equity 2019 2018 $200,000 $170,000 864,000 700,000 2,000,000 1,400,000 $3,064,000 $2,270,000 6,000,000 5,600,000 $9,064,000 $7,870,000 $2,400,000 1,600,000 $3,000,000 2,400,000 2,000,000 664,000 $2,664,000 $9,064,000 $1,090,000 800,000 $1,890,000 2,400,000 3,000,000 580,000 $3,580,000 $7,870,000 Walker has never paid a dividend on its common share, and it issued $2,400,000 of 10-year non- callable, long-term debt in 2018. As of the end of 2019, none of the principal on this debt had been repaid. Assume that the company's sales in 2018 and 2019 were the same. Which of the following statements must be correct? O a. Walker issued new common shares in 2019. b. Walker decreased its short-term bank debt in 2019. O c. Walker issued long-term debt in 2019. O d. Walker repurchased some common shares in 2019.

Below are the 2018 and 2019 year-end balance sheets for Walker Inc.: Assets Cash Accounts receivable Inventories Total current assets Net fixed assets Total assets Liabilities and equity Accounts payable Notes payable Total current liabilities Long-term debt Common stock Retained earnings Total common equity Total liabilities and equity 2019 2018 $200,000 $170,000 864,000 700,000 2,000,000 1,400,000 $3,064,000 $2,270,000 6,000,000 5,600,000 $9,064,000 $7,870,000 $2,400,000 1,600,000 $3,000,000 2,400,000 2,000,000 664,000 $2,664,000 $9,064,000 $1,090,000 800,000 $1,890,000 2,400,000 3,000,000 580,000 $3,580,000 $7,870,000 Walker has never paid a dividend on its common share, and it issued $2,400,000 of 10-year non- callable, long-term debt in 2018. As of the end of 2019, none of the principal on this debt had been repaid. Assume that the company's sales in 2018 and 2019 were the same. Which of the following statements must be correct? O a. Walker issued new common shares in 2019. b. Walker decreased its short-term bank debt in 2019. O c. Walker issued long-term debt in 2019. O d. Walker repurchased some common shares in 2019.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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