Below are the year-end balance sheets for Wolken Enterprises:

\begin{array}{c}\begin{array}{lll} \text {Assets:}\\ \text {Cash}\\ \text {Accounts receivable}\\ \text {Inventories}\\ \text {Total current assets}\\ \text {Net fixed assets}\\ \text {Total assets}\\\\\underline{ \text {Liabilities and equity:}}\\ \text {Accounts payable}\\ \text {Notes payable}\\ \text {Total current liabilities}\\ \text {Long-term debt}\\ \text {Common stock}\\ \text {Retained earnings}\\ \text {Total common equity}\\ \text {Total liabilities and equity}\end{array}\begin{array}{r}2020 \\200,000 \\864,000 \\\underline{2,000,000}\\ \$ 3,064,000 \\6,000,000 \\\underline{\$ 9,064,000 }\\\\\\\$ 1,400,000 \\1,600,000 \\\underline{\$ 3,000,000 }\\ 2,400,000 \\3,000,000 \\\underline{664,000} \\ \$ 3,664,000 \\\underline{\$ 9,064,000 }\\\end{array}\begin{array}{r}2019 \\\$ 170,00 \\7000,00 \\\underline{1,400,000} \\ \$ 2,270,00 \\5,600,00 \\\underline{\$ 7,870,00}\\\\\\\$ 1,090,00 \\1,800,00 \\\underline{\$ 2,890,000} \\2,400,00 \\2,000,00 \\\underline{580,00 }\\\$ 2,580,00 \\\underline{\$ 7,870,00 }\\\end{array} \end{array}

Wolken has never paid a dividend on its common stock, and it issued $2,400,000 of 10-year non-callable, long-term debt in 2019.As of the end of 2020, none of the principal on this debt had been repaid.Assume that the company's sales in 2019 and 2020 were the same.Which of the following statements must be CORRECT?
A) Wolken increased its short-term bank debt in 2020.
B) Wolken issued long-term debt in 2020.
C) Wolken issued new common stock in 2020.
D) Wolken repurchased some common stock in 2020.
E) Wolken had negative net income in 2020.

In Accounting, Emphasis Is Placed on Determining Net Income in Accordance

True/False

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