Below are the 2008 and 2009 year-end balance sheets for Wolken Enterprises: D Wolken has never paid a dividend on its common share, and it issued $2,400,000 of 10-year non- callable, long-term debt in 2008. As of the end of 2009, none of the principal on this debt had been repaid. Assume that the company's sales in 2008 and 2009 were the same. Which of the following statements must be correct?

Question

Below are the 2008 and 2009 year-end balance sheets for Wolken Enterprises:  D Wolken has never paid a dividend on its common share, and it issued $2,400,000 of 10-year non- callable, long-term debt in 2008. As of the end of 2009, none of the principal on this debt had been repaid. Assume that the company's sales in 2008 and 2009 were the same. Which of the following statements must be correct?

Quizplus · Accepted Answer

The Answer of Below are the 2008 and 2009 year-end balance sheets for Wolken Enterprises:  D Wolken has never paid a dividend on its common share, and it issued $2,400,000 of 10-year non- callable, long-term debt in 2008. As of the end of 2009, none of the principal on this debt had been repaid. Assume that the company's sales in 2008 and 2009 were the same. Which of the following statements must be correct?

Below Are the 2008 and 2009 Year-End Balance Sheets for Wolken