At the beginning of the year, Execon Company had total assets of $200,000, total liabilities of $110,000, and shareholders' equity of $90,000 . For the year, Execon Company earned net income of $75,000 and declared cash dividends of $30,000 . At the end of the year, the company had total assets of $300,000 and its shareholders' equity was at $135,000 . At the end of the year, Execon Corporation
had total liabilities of:
a. $0.
b. $45,000.
c. $50,000.
d. $165,000.
e. None of the answers are correct.
D
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The revenue cycle consists of
a. one subsystem–order entry b. two subsystems–sales order processing and cash receipts c. two subsystems–order entry and inventory control d. three subsystems–sales order processing, credit authorization, and cash receipts
Which of the following statements is most likely true if Red Inc has an operating leverage of 2.0 while Blue Corp has an operating leverage of 1.4?
A) Red Inc. is selling its products for a higher sales price than Blue Corp. B) Red Inc.'s net operating income will be less sensitive to a change in sale volume than Blue Corp. C) Blue Corp.'s fixed costs in relation to variable costs are lower than Red Inc.'s. D) Blue Corp. has a lower contribution margin per unit than Red Inc.
On January 1, 2018, Deuce Inc. acquired 15% of Wiz Co.'s outstanding common stock for $62,400 and did not exercise significant influence. Wiz earned net income of $96,000 in 2018 and paid dividends of $36,000. The fair value of Deuce's investment was $80,000 at December 31, 2018. On January 3, 2019, Deuce bought an additional 10% of Wiz for $54,000. This second purchase gave Deuce the ability to significantly influence the decision making of Wiz. During 2019, Wiz earned $120,000 and paid $48,000 in dividends. As of December 31, 2019, Wiz reported a net book value of $468,000. At the date of the second purchase, Deuce concluded that Wiz Co.'s book values approximated fair values and attributed any excess cost to goodwill.On Deuce's December 31, 2019 balance sheet, what balance was reported
for the Investment in Wiz Co. account? A. $117,000. B. $134,400. C. $141,200. D. $152,000. E. $143,400.
Constable Co. reported the following information at December 31, Year 1: Accounts Payable$4550? Accounts Receivable 9400? Cash 23,990? Common Stock 90,500? Equipment 50,000? Inventory 31,700? Notes Payable due December 31, Year 3 2550? Retained Earnings, December 31, Year 1 14,140? Wages Payable 3350? What is the amount of current liabilities on the classified balance sheet?
A. $7900 B. $10,450 C. $7100 D. $4550