Reference no: EM132489141
The following are condensed comparative financial statements of Nero Corporation for the three years ended December 31, 2019, 2020, and 2021.
The following additional information is available:
Point 1: All sales are on credit; credit terms are net 60 days after invoice date.
Point 2: Twenty shares of common stock were outstanding in years 2019 and 2020. On April 1, 2021, an additional 30 shares of common stock were issued for $144 cash in total.
Point 3: The accounts receivable balance at January 1, 2019 was $19.
Point 4: The inventory balance at January 1, 2019 was $24.
Point 5: The net capital assets balance at January 1, 2019 was $91.
Point 6: The total assets balance at January 1, 2019 was $165.
Point 7: The total stockholders' equity balance at January 1, 2019 was $101.
Point 8: Dividends of $8 were declared in 2019. No dividends were declared in 2020 and 2021.
Point 9: Interest has been paid on the bonds each year and is included in interest expense.
Question 1: After applying multiple analysis techniques, what conclusions can be drawn from the provided financial data?