Question
Below are the 2022 and 2023 year-end balance sheets for the Detroit Tigers: (Hint: Take a minute or so to study this balance sheet before
Below are the 2022 and 2023 year-end balance sheets for the Detroit Tigers:
(Hint: Take a minute or so to study this balance sheet before answering this question)
Assets: 2023 2022
Cash $100,000 $85,000
Accounts receivable 432,000 350,000
Inventories 1,000,000 700,000
Total current assets $1,532,000 $ 1,135,000
Net fixed assets 3,000,000 2,800,000
Total assets $4,532,000 $ 3,935,000
Liabilities and equity:
Accounts payable $ 700,000 $ 545,000
Notes payable 800,000 900,000
Total current liabilities $1,500,000 $1,445,000
Long-term debt (Bonds) 1,200,000 1,200,000
Common Stock 1,500,000 1,000,000
Retained earnings 332,000 290,000
Total common equity $1,832,000 $1,290,000
Total liabilities and equity $4,532,000 $3,935,000
The Detroit Tigers has never paid a dividend on its common stock. The Detroit Tigers issued $1,200,000 of long-term debt in 2007. This debt is scheduled to mature in 2037. As of the end of 2023, none of the principal on this debt has been repaid. Assume that 2022 and 2023 sales were the same in both years. Which of the following statements is correct?
a. The Detroit Tigers had net loss in 2023
b. The Detroit Tigers issued new common stock in 2023
c. The Detroit Tigers issued long-term debt in 2023
Statements a and b are correct.
All of these statements are correct
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