Question 20 (2 points)
Digman Co. had retained earnings of $400,000
and $50,000 in cash on January 1st. It made a
net income of $300,000 in the year.
Amortization/depreciation expense was
$250,000. Digman Co. issued additional
common shares for $500,000 and borrowed
$600,000 from the Bank of Toyland. It bought
new plant and equipment at a cost of
$1,000,000 and sold some unused land for
$400,000. The cash balance on December 31st
was:
$1,000,000
$50,000
$1,050,000
$1,100,000
