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Refresher SFA 2 Comparative financial statements for Heritage Antiquing Services for the fiscal year ending December 31 appear on the following page. The company did
Refresher SFA 2
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 600,000 shares of common stock were outstanding. The interest rate on the bond payable was 14%, the income tax rate was 40%, and the dividend per share of common stock was $0.75. The market value of the company's common stock at the end of the year was $26. All of the company's sales are on account. Heritage Antiquing Services Comparative Balance Sheet (dollars in thousands) This Year Last Year AssetsS Current assets: Cash Accounts receivable, net Inventory Prepaid expenses $ 1,080 $ 1,210 9,000 6,500 12,000 10,600 500 600 22,680 18,810 Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment 9,000 9,000 36,800 38,000 45,800 47,000 $68,480 $65,810 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued payables Notes payable, short term $18,500 $17,400 700 100 19,400 18,200 900 Total current liabilities Long-term liabilities: 8,000 8,000 27,400 26,200 Bonds payable Total liabilities Stockholders'equity: Preferred stock Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity 1,000 1,000 2,000 2,000 4,000 4,000 7,000 7,000 34,080 32,610 41,080 39,610 Total liabilities and stockholders' equity $68,480 $65,810Step by Step Solution
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