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

question 27

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 of $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:

Ideal Type

A conceptual model that captures the essential qualities of a phenomenon, used as a tool for analysis and comparison in the social sciences.

Capitalism

Capitalism is an economic system where trade, industry, and the means of production are largely or entirely owned by private individuals or corporations, aiming for profit in competitive markets.

Classical Theorist

A scholar from the foundational period of a discipline whose theories remain influential to contemporary understanding and practice.

Jean-Jacques Rousseau

An 18th-century Genevan philosopher, writer, and composer known for his influential ideas on education, society, and politics, which emphasize natural human goodness and the corrupting nature of civilization.