For questions 6-8, use the below balance sheet

XYZ Hospital Systems, Inc

Assets

Cash

7,100,000.00

Investments

500,000.00

Inventories

50,000.00

Net Accounts receivable

5,000,000.00

12,650,000.00

Fixed assets:

Property and equipment

50,000,000.00

Leasehold improvements

500,000.00

Less accumulated depreciation

(10,000,000.00)

Total fixed assets

40,500,000.00

Total assets

53,150,000.00

Liabilities and owner's equity

Current liabilities:

Accounts payable

250,000.00

Accrued wages

400,000.00

Unearned revenue

50,000.00

Total current liabilities

700,000.00

Long-term liabilities:

Mortgage payable

40,000,000.00

Total long-term liabilities

40,000,000.00

Total Liabilities

40,700,000.00

Owner's equity:

Capital Contributions

50,000.00

Accumulated retained earnings

12,400,000.00

Total owner's equity

12,450,000.00

Total liabilities and owner's equity

53,150,000.00

6. Total current assets for XYZ Hospital Systems, Inc was

a. $17,175,000

b. $700,000

c. $12,650,000

d. cannot be determined

7. The title section of the balance sheet should show

a. as of December 31st, 20XX

b. for the period January 1st, 20XX through December 31st, 20XX

c. December 31st, 20XX

d. none of the above

8. Assuming that the balance sheet and income statement are correlated, dividends to XYZ hospital owners were

a. $75,000

b. $250,000

c. $25,000

d. cannot be determined