Galan Associates Prepared Its Financial Statement for 2008 Based on the Information

question 13

Multiple Choice

Galan Associates prepared its financial statement for 2008 based on the information given here. The company had cash worth $1,234, inventory worth $13,480, and accounts receivables worth $7,789. The company's net fixed assets are $42,331, and other assets are $1,822. It had accounts payables of $9,558, notes payables of $2,756, common stock of $22,000, and retained earnings of $14,008. How much long-term debt does the firm have?

• A) $54,342
• B) $76,342
• C) $12,314
• D) $18,334

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Definitions:

Long-Term Leases

Lease agreements that extend for a substantial period of time, often more than one year, used frequently in real estate and equipment leasing.

Residential Property

Real estate designated for occupation by households or for non-commercial purposes.

Extensions

Additions or expansions to a pre-existing document, contract, or period of time.

Local Housing Codes

Rules and regulations established by municipal governments aimed at ensuring safe and habitable housing conditions.