The Beginning and Ending Balances of Long-Term Debt Are $69,000

question 117

Multiple Choice

The beginning and ending balances of long-term debt are $69,000 and $40,200, respectively, and, cash payments for long-term debt during the year were $39,100. How much new long-term debt was issued during the year?

• A)New long-term debt issued during the year was $1100.
• B)New long-term debt issued during the year was $10,300.
• C)New long-term debt issued during the year was $28,800.
• D)New long-term debt issued during the year was $79,300.

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Definitions:

EBIT

Earnings Before Interest and Taxes, a financial metric that calculates a company's profitability based on operations, excluding interest and taxes.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, which is considered when financing its overall operations and growth.

Economic Expansion

A phase of the business cycle where economic activity is increasing, characterized by higher production, employment, and income.

Outstanding Shares

The total number of shares of stock that are currently owned by all shareholders of a company, including shares held by institutional investors and restricted shares.