Solvency Analysis The following information is available from the balance sheets at the ends of…

Solvency Analysis

The following information is available from the balance sheets at the ends of the two most recent

years and the income statement for the most recent year of Impact Company

Other Information

a. Short-term notes payable represents a 12-month loan that matured in November 2008. Interest

of 12% was paid at maturity.

b. One million dollars of serial bonds had been issued ten years earlier. The first series of

$200,000 matured at the end of 2008, with interest of 8% payable annually.

c. Cash flow from operations was $185,000 in 2008. The amounts of interest and taxes paid

during 2008 were $89,000 and $96,000, respectively