Below Are the Year-End Balance Sheets for Wolken Enterprises Wolken Has Never Paid a Dividend on Its Common Stock

Below are the year-end balance sheets for Wolken Enterprises: $\begin{array}{lcll}\text { Assets: } & 2015 &2014\\\text { Cash } & \$ 200,000 &\$ 170,000\\\text { Accounts receivable } & 864,000 &700,000\\\text { Inventories } & 2.000,000&1.400 .000\\\text {Net fixed assets }&\$ 3,064,000 &\$ 2270000\\\text { Total current assets }&6,000,000 &5,600,000\\\text { Total current assets }&\$ 9,064,000 &\$ 7,870,000\\\text { Liabilities and equity: }\\ \text { Accounts payable } & \$ 1,400,000 & \$ 1,090,000 \\\text { Notes payable } &1,600,000 & 1,800,000\\\text { Total current liabilities } &\$ 3,000,000&\$ 2.890,000\\\text { Long-term debt } & 2,400,000 & 2,400,000 \\\text { Common stock } & 3,000,000 & 2,000,000 \\\text { Retained earnings } & 664,000 & 580,000\\\text { Total common equity} &\$ 3,664,000 & \$ 2,580,000 \\\text {Total liabilities and equity } &\$ 9,064,000&\$ 7870000\\\end{array}$


Wolken has never paid a dividend on its common stock, and it issued $2,400,000 of 10-year non-callable, long-term debt in 2014. As of the end of 2015, none of the principal on this debt had been repaid. Assume that the company's sales in 2014 and 2015 were the same. Which of the following statements must be CORRECTσ

A) wolken increased its short-term bank debt in 2015.
B) wolken issued long-term debt in 2015.
C) wolken issued new common stock in 2015.
D) wolken repurchased some common stock in 2015.
E) wolken had negative net income in 2015.