Question
Beginning of year: current assets = $280,000, long-term debt = $210,000, total liabilities = $420,000, shareholders equity = $55,000. End of year: current assets =
Beginning of year: current assets = $280,000, long-term debt = $210,000, total liabilities = $420,000, shareholders equity = $55,000. End of year: current assets = $258,000, long-term debt = 230,000, total liabilities = $400,000, shareholders equity = 75,000. Over the year: depreciation = $20,000, interest paid = $26,000, net income = $22,000, addition to retained earnings = $5,000. What is net new equity?
A. | Below $0 | |
B. | Between $0 and $5,500 | |
C. | Between $5,500 and $10,500 | |
D. | Between $10,500 and $15,500 | |
E. | Between $15,500 and $20,500 | |
F. | Between $20,500 and $25,500 | |
G. | Between $25,500 and $30,500 | |
H. | Above $30,500 |
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