Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Comparative financial statements for Heritage Antiquing Services for the fiscal year ending December 31 appear on the following page. The company did not issue any
Comparative financial statements for Heritage Antiquing Services for the fiscal year ending December 31 appear on the following page. The company did not issue any new common or preferred stock during the year. A total of 600 thousand shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75. The market value of the companys common stock at the end of the year was $24. All of the companys sales are on account.
Heritage Antiquing Services Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets Cash Accounts receivable, net Inventory Prepaid expenses $1,150 1,310 7,500 13,300 ,100 670 9,300 720 Total current assets 24,470 20,580 Property and equipment: 10,500 0,500 Land Buildings and equipment, net 46,370 40,322 56,870 50,822 $81,340 $71,402 Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities $18,500 $19,000 760 180 s payable 960 180 Accrued payables Notes payable, short term 19,640 19,940 8,800 28,440 28,740 Total current liabilities Long-term liabilities Bonds payable 8,800 Total liabilities Stockholders' equity Preferred stock Common stock 1,000 600 4,000 1,000 600 4,000 Additional paid-in capital 5,600 Total paid-in capital Retained earnings 5,600 47,300 37,062 Total stockholders' equity 52,900 42,662 Total liabilities and stockholders' equity $81,340 $71,402Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started