Consider the following abbreviated financial statements for a company ...
60.1K
Verified Solution
Link Copied!
Question
Finance
Consider the following abbreviated financial statements for a company
| ASSETS | LIABILITIES and OWNERS EQUITY | ||||
|
| 2019 | 2020 |
| 2019 | 2020 |
| Current Assets | $1,000 | $1,200 | Current Liabilities | $500 | $700 |
| Net Fixed Assets | $5,000 | $5,500 | Long-term Debt | $2,500 | $2,800 |
| 2020 INCOME STATEMENT | |
| Sales | $30,000 |
| Costs of Goods Sold | $20,000 |
| Depreciation | $5,000 |
| Interest Expense | $1,000 |
(a) (4 points) What is owners equity for 2019 and 2020?
(b) (4 points) During 2020, Kirksville Inc. has paid off $400 of long-term debt. How much must Kirksville Inc. have raised in new long-term debt the year?
(c) (7 points) During 2020, Kirksville Inc. paid out $2,200 in cash dividends, what is the cash flow to stockholders? Assume that the applicable marginal tax rate is 20%.
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.