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Company Baldwin invested $21,700,000 in plant and equipment last year. The plant investment was funded with bonds at a face value of $16,208,786 at 12.2% interest, and equity of $5,491,214. Depreciation is 15 years straight line. For this transaction alone which of the following statements are true? Select : 5 On the Balance sheet, Plant \& Equipment increased by $21,700,000. On the Balance sheet, Long Term Debt changed by $16,208,786. Since the new plant was funded with debt and equity, on the Balance sheet Retained Earnings decreased by 55,491,214, the difference between the investment $21,700,000 and the bond $16,208,786. Depreciation increased by $1,446,667. Buying the plant had no net effect on the Cash account, because the plant was paid for by the bond plus retained earnings. Cash went up when the Bond was issued by $16,208,786. Cash went down by $21,700,000 when the plant was purchased. Cash was pulled from retained earnings to cover the $5,491,214 difference between the plant purchase and bond issue. Balance Sheet Survey Cash Accounts Receivabie Ifventory Total Curtent Assets Ptant and equipment Accurvulated Depreciation Total Foxed Assets Total Assets Accounts Payable Curtent Debt Tolal Current Liabities Long Term Dobt Total Liabilities Common Stock Retained Eamings Total Equity Total Liabilities 8 Owner's Equity Andrews: Baidwin Chester Digby \begin{tabular}{lll|l|} $16.442 & $13,212 & $11,619 & $10,785 \\ 511,617 & $20,448 & $3,991 & $8,506 \\ $66,258 & $63,703 & $64,359 & $53,208 \end{tabular} ($66,879)($48,997)($77,749)($70,200) \begin{tabular}{rrrr|} \hline$130,967 & $130,366 & $206,310 & $198,768 \\ \hline$18,462 & $9,216 & $7,121 & $6,650 \end{tabular} \begin{tabular}{lrrr} $11,300 & $28,979 & $41,916 & $32,691 \\ $29,762 & $38,195 & $49,037 & $39,341 \\ $53,009 & $25,699 & $37,992 & $81,538 \\ $82,771 & $63,894 & $137,029 & $120,870 \\ $14,180 & $9,952 & $38,349 & $36,820 \\ $84,016 & $56,520 & $30,932 & $41,070 \\ $98,196 & $66,472 & $69,281 & $57,890 \\ $160,967 & $130,366 & $206,310 & $198,760 \\ \hline \end{tabular} Income Statement Survey Cash Flow Statement Survey Andrews Baldwin Chester Digby Cash flows from operating activities Net Income (Loss) $20,171$13,730($3,893) (\$818) Adjustment for non-cash items: Depreciation Extraordinary gains/losses/writeoffs $12,10650$7,71150$14,647$0$13,024$0 Changes in current assets and liabilities: Accounts payable Inventory Accounts receivable Net cash from operations Cash flows from investing activities Plant improvements (net) ($26,132)($21,700)($42,140)($50,460) Cash flows from financing activities Dividends paid Saies of common stock Purchase of common stock Cash from long term debt issued Earty retirement of long term debt Retrement of current debt Cash from current debt borrowing Cash from emergency loan Net cash from financing activities Net change in cash position \begin{tabular}{rrrr} $0 & $0 & $0 & $0 \\ $0 & $1,147 & $10,677 & $18,272 \\ $50 & $0 & $0 & $0 \\ $35,000 & $16,209 & $31,029 & $33,698 \\ $50 & $0 & $0 & $0 \\ ($6,687) & ($14,271) & ($25,182) & ($21,757) \\ $0 & $17,679 & $30,616 & $21,391 \\ $0 & $0 & $0 & $0 \\ \hline$28,313 & $20,764 & $47,140 & $51,604 \\ $38,199 & $12,181 & $22,627 & $15,938 \end{tabular}