The following table presents the long-term liabilities and stockholders’ equity of Information Control Corp. one year ago:



Long-term debt $ 66,900,000
Preferred stock 4,190,000
Common stock ($1 par value) 16,900,000
Capital surplus 46,900,000
Accumulated retained earnings 136,900,000


During the past year, the company issued 11.9 million shares of new stock at a total price of $61.8 million, and issued $36.9 million in new long-term debt. The company generated $12.8 million in net income and paid $3.9 million in dividends.



Prepare the current balance sheet reflecting the changes that occurred at the company during the year.(Do not round intermediate calculations. Enter your answers in dollars, not millions of dollars, e.g., 1,234,567.)



Respuesta :

Answer:

See explanation.

Explanation:

We can compute the new balances as below,

Long term debt = (66.9 + 36.9) = $103,800,000

Preferred stock (unchanged) = $4,190,000

Common Stock = (16.9+11.9) = $28,800,000

Capital Surplus = (46.9 + (61.8-11.9)) = $96,800,000

Accumulated Retained earnings = (136.9+12.8-3.9) = $145,800,000

Capital surplus is computed by subtracting share par value of 11.9 million from total price of share issue.

Accumulated retained earnings are calculated by subtracting the dividends and adding current net income.

Hope that helps.