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IMC Inc. presents the following data. IMC Inc. has never paid a dividend on its common stock, and it issued $2,400,000 of 10-year non-callable, long-term
| IMC Inc. presents the following data. IMC Inc. has never paid a dividend on its common stock, and it issued $2,400,000 of 10-year non-callable, long-term debt in 2019. As of the end of 2020, none of the principal on this debt had been repaid. Assume that the company's sales in 2019 and 2020 were the same. Question: IMC Inc. issued new common stock in 2020. True or False? |
| Assets: | 2020 | 2019 |
| Cash | 200,000 | 170,000 |
| Accounts receivable | 864,000 | 700,000 |
| Inventories | 2,000,000 | 1,400,000 |
| Total current assets | 3,064,000 | 2,270,000 |
| Net fixed assets | 6,000,000 | 5,600,000 |
| Total assets | 9,064,000 | 7,870,000 |
| 2020 | 2019 | |
| Liabilities and equity: | ||
| Accounts payable | 1,400,000 | 1,090,000 |
| Notes payable | 1,600,000 | 1,800,000 |
| Total current liabilities | 3,000,000 | 2,890,000 |
| Long-term debt | 2,400,000 | 2,400,000 |
| Common stock | 3,000,000 | 2,000,000 |
| Retained earnings | 664,000 | 580,000 |
| Total common equity | 3,664,000 | 2,580,000 |
| Total liabilities and equity | 9,064,000 | 7,870,000 |
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