Now suppose that the firm plans instead to increase long-term debt only to $1,100 and does not wish to issue any new shares of stock. What is now the balancing item?
Now suppose that the firm plans instead to increase long-term debt only to $1,100 and does not wish to issue any new shares of stock. What is now the balancing item?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![d. Now suppose that the firm plans instead to increase long-term debt only to $1,100 and does
not wish to issue any new shares of stock. What is now the balancing item?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9acdfab9-69d6-4171-9bc8-c5bef4042341%2Faa2d9a77-5066-410d-9326-5a4f720fd41f%2Fp12lgg4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:d. Now suppose that the firm plans instead to increase long-term debt only to $1,100 and does
not wish to issue any new shares of stock. What is now the balancing item?
![12. Using Percentage of Sales. Eagle Sports Supply has the following financial statements.
Assume that Eagle's assets are proportional to its sales. (LO18-2)
INCOME STATEMENT, 2019
Sales
$950
Costs
250
Interest
50
Taxes
150
Net income
$500
BALANCE SHEET, YEAR-END
2018
2019
2018
2019
Assets
$2,700
$3,000
Debt
$ 900
$1,000
Equity
1,800
2,000
$3,000
Total
$2,700
$3,000
Total
$2,700](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9acdfab9-69d6-4171-9bc8-c5bef4042341%2Faa2d9a77-5066-410d-9326-5a4f720fd41f%2Fd7ki3op_processed.jpeg&w=3840&q=75)
Transcribed Image Text:12. Using Percentage of Sales. Eagle Sports Supply has the following financial statements.
Assume that Eagle's assets are proportional to its sales. (LO18-2)
INCOME STATEMENT, 2019
Sales
$950
Costs
250
Interest
50
Taxes
150
Net income
$500
BALANCE SHEET, YEAR-END
2018
2019
2018
2019
Assets
$2,700
$3,000
Debt
$ 900
$1,000
Equity
1,800
2,000
$3,000
Total
$2,700
$3,000
Total
$2,700
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