Page 4 of 9 Question 19 (2.5 points) Below are the year-end balance sheets for Wolken Enterprises: Assets: 2017 2016 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 5.000.000 Total assets $9,064,000 $7.870.000 Liabilities and equity 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 $ 664,000 580,000 Retained earnings Total common equity $3,664,000 $2,580,000 $9,064,000 $7.870,000 Total liabilities and equity 10 liabilities and equity $2,064,000 $7,870,000 Wolken has never paid a dividend on its common stock, and it issued $2,400,000 of 10-year non-callable, long-term debt in 2016. As of the end of 2017, none of the principal on this debt had been repaid. Assume that the company's sales in 2016 and 2017 were the same. Which of the following statements must be CORRECT? 1) Wolken increased its short-term bank debt in 2017. 2) Wolken issued long-term debt in 2017. 3) Wolken issued new common stock in 2017. 4) Wolken repurchased some common stock in 2017. 5) Wolken had negative net income in 2017. Page 4 of 9 Next Page Da