The following table presents the long-term liabilities and stockholders' equity of Information Control Corp. one year ago:
Question:
Long-term debt ................. $35,000,000
Preferred stock ................... 4,000,000
Common stock ($1 par value) ............ 11,000,000
Capital surplus .................. 26,000,000
Accumulated retained earnings ........... 75,000,000
During the past year, Information Control issued 8 million shares of new stock at a total price of $29 million, and issued $6 million in new long-term debt. The company generated $7 million in net income and paid $2.5 million in dividends. Construct the current balance sheet reflecting the changes that occurred at Information Control Corp. during the year.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For
Corporate Finance Core Principles and Applications
ISBN: 978-0077905200
3rd edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
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