On December 31, 2015, the net assets of Martinez Manufacturing amounted to $40,000. Net income calculated by using the financial capital maintenance concept amounted to $12,000. During the year, additional common stock was issued for $8,000, and $5,000 of dividends was paid. The net assets at January 1, 2015, amounted to
A. $31,000.
B. $37,000.
C. $20,000.
D. $25,000.
Answer: D
Business
You might also like to view...
Assuming a company has a positive contribution margin, which of the following changes will cause net operating income to increase?
A) A decrease in variable costs. B) A decrease in the sale price C) An increase in total fixed costs. D) A decrease in the sales volume.
Business
Long queues are evidence of a _________ problem.
What will be an ideal response?
Business
If actual inflation rates exceed the rates assumed in our goal planning, the required annual savings amount can be reduced
Indicate whether the statement is true or false.
Business
The only sensible argument for using credit is that you lack sufficient resources to purchase with cash
Indicate whether the statement is true or false.
Business