Answer:
This question is incomplete, I googled the correct question content as:
Below are the 2012 and 2013 year-end balance sheets for Tran Enterprises:
Assets: Year 2013 Year 2012
Cash $ 200,000 $ 170,000
Accounts receivable 864,000 700,000
Inventories 2,000,000 1,400,000
Total current assets $3,064,000 $2,270,000
Net fixed assets 6,000,000 5,600,000
Total assets $9,064,000 $7,870,000
Liabilities and equity:
Year 2013 Year 2012
Accounts payable $1,400,000 $1,090,000
Notes payable to bank 1,600,000 1,800,000
Total current liabilities $3,000,000 $2,890,000
Long-term debt 2,400,000 2,400,000
Common stock 3,000,000 2,000,000
Retained earnings 664,000 580,000
Total common equity $3,664,000 $2,580,000
Total liabilities and equity $9,064,000 $ 7,870,000
The firm has never paid a dividend on its common stock, and it issued $2,400,000 of 10-year, non-callable, long-term debt in 2012. As of the end of 2013, none of the principal on this debt had been repaid. Assume that the company's sales in 2012 and 2013 were the same. Which of the following statements must be CORRECT?
a.
The firm issued long-term debt in 2013.
b.
The firm issued new common stock in 2013.
c.
The firm had negative net income in 2013.
d.
The firm increased its short-term bank debt in 2013.
e.
The firm repurchased some common stock in 2013.
Answer
Step-by-step explanation:
b : The firm issued new common stock in 2013.
At the end of 2012 , common stock balance is $ 2000000 and at the end of 2013 common stock balance is 3000000. Thus, the firm increased the new common stock in 2013