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

question 25

Multiple Choice

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?

• A) Wolken increased its short-term bank debt in 2009.
• B) Wolken issued long-term debt in 2009.
• C) Wolken issued new common shares in 2009.
• D) Wolken repurchased some common shares in 2009.

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Definitions:

Fund-Raising Strategy

A planned approach to generating financial support for a project or organization, often involving various funding sources and methods.

Constituencies

Groups or individuals that an organization must consider and accommodate in its decision-making processes.

Positive Cash Flow

A financial state where the cash inflows in a business exceed the outflows, indicating financial health.

Long-Term Debt

Refers to loans or borrowed funds that are to be repaid over a period longer than one year, typically used for significant investments or to fund major projects.