The following table presents the long-term liabilities and stockholders equity of Information Control Corp. from one year
Question:
The following table presents the long-term liabilities and stockholders’ equity of Information Control Corp. from one year ago:
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Long-term debt ................................. 45,000,000
Preferred stock .................................. 2,900,000
Common stock ($1 par value) .......... 11,000,000
Accumulated retained earnings ....... 107,000,000
Capital surplus .................................. 49,000,000
During the past year, the company issued 4.5 million shares of new stock at a total price of $58 million, and issued $30 million in new long-term debt. The company generated $7.5 million in net income and paid $1.7 million in dividends. Construct the current balance sheet reflecting the changes that occurred at the company during the year.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Corporate Finance
ISBN: 978-1259918940
12th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan