Use the Motorcars of Phoenix data in Short Exercise S12-7 to compute.
a. New borrowing or payment of long-term notes payable. Motorcars of Phoenix had only 1 long-term note payable transaction during the year.
b. Issuance of common stock or retirement of common stock. Motorcars of Phoenix had only 1 common stock transaction during the year.
c. Payment of cash dividends (same as dividends declared).
Data in Short Exercise S12-7
Motorcars of Phoenix, Inc.
Income Statement
Year Ended December 31, 20X6
(In thousands)
Sales revenue ............................ $710
Cost of goods sold.................... $340
Salary expense.......................... 70
Depreciation expense ............... 20
Other expenses......................... 130
Total expenses.......................... 560
Net income .............................. $150

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Motorcars of Phoenix, Inc. Comparative Balance Sheet December 31, 20X6 and 20XS In thousands) Assets Current: 20x6 20xS Liabilitios 20X6 20X5 Current Accounts payab Salary payable. Accrued liabilities. Cash Accounts receivable. S19 S 16 59 48 75 84 l. S47 S 42 21 23 Prepaid expenses. 3 2 Long-term notes payable 68 58 Long-term investments Plant assets, net. 55 75 225 185 Stockholders' Equity Common 40 250 S436 32 Retained earmings$410 246 Total S436 $410 Total