11 & 12 multiple choice

11. Below are the year-end balance sheets for Willy Wonka Enterprises: Assets: Cash Accounts receivable Inventories Total current assets Net fixed assets Total assets 2013 $ 200,000 864,000 2.000.000 $3,064,000 6.000.000 $9.064.000 2012 $ 170,000 700,000 1.400.000 $2,270,000 5.600.000 $7.870,000 Liabilities and equity: Accounts payable Notes payable Total current liabilities Long-term debt Common stock Retained earnings Total common equity Total liabilities and equity $1,400,000 1.600.000 $3,000,000 2,400,000 3,000,000 664,000 $3,664,000 $9,064,000 $1,090,000 1.800.000 $2.890.000 2,400,000 2,000,000 580.000 $2,580,000 S7.870,000 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 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? Wolken increased its short-term bank debt in 2013. Wolken issued long-term debt in 2013. Wolken issued new common stock in 2013. Wolken repurchased some common stock in 2013. Wolken had negative net income in 2013. 12. Other things held constant, which of the following actions would increase the amount of cash on a company's balance sheet? The company purchases a new piece of equipment. The company repurchases common stock The company pays a dividend. The company issues new common stock. The company gives customers more time to pay their bills