Question
The 2020 balance sheet of Osakas Tennis Shop, Incorporated, showed long-term debt of $5.4 million, and the 2021 balance sheet showed long-term debt of $5.65
The 2020 balance sheet of Osakas Tennis Shop, Incorporated, showed long-term debt of $5.4 million, and the 2021 balance sheet showed long-term debt of $5.65 million. The 2021 income statement showed an interest expense of $175,000. The 2020 balance sheet showed $530,000 in the common stock account and $2.3 million in the additional paid-in surplus account. The 2021 balance sheet showed $570,000 and $2.5 million in the same two accounts, respectively. The company paid out $400,000 in cash dividends during 2021. Suppose you also know that the firms net capital spending for 2021 was $1,390,000, and that the firm reduced its net working capital investment by $73,000.
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