17 The table below gives the balance sheet for Travellers Inn Inc . ( 71! ) , a company that was formed by merging a umber of regional motel chains . Travelers Inn Inc Balance Sheet December 31 , 2009 Cash $10 Accounts payable $10 Accounts receivable 20 Accruals 10 Inventories 20 Short- term debt Current assets $50 Current liabilities $25 Net fixed assets 50 Long-term debt Preferred stock Common equity Common stock 10 Retained earnings 30 total common equity 40 Total assets $ 100 Total claims $ 100 The following facts also apply to TIL . ( 1 ) Short-term debt consists of bank loans that currently cost 10% , with interest payable quarterly . These loans are used to finance receivables and inventories on a seasonal basis , so bank loans are zero in the off- season