On January 1, Year 2, Chavez Company had beginning balances as follows: total assets of $12,500, total liabilities of $4,500, and common stock of $3,000. During Year 2, Chavez paid dividends to its stockholders of $2,000. Given that retained earnings amounted to $6,000 at the end of Year 2, what was Chavez's net income for Year 2?
A. $7,000
B. $5,000
C. $2,000
D. $3,000
Answer: D
You might also like to view...
A machine costing $75,000 is purchased on September 1, Year 1. The machine is estimated to have a salvage value of $10,000 and an estimated useful life of 4 years. Double-declining-balance depreciation is used. If the machine is sold on December 31, Year 3 for $13,000, the journal entry to record the sale will include:
A. A credit to gain on sale for $4,979. B. A debit to loss on sale for $2,625. C. A credit to accumulated depreciation for $59,375. D. A credit to gain on sale for $8,000. E. A debit to loss on sale for $3,042.
________ may be considered the advance work that must be done in order to effectively formulate and implement strategies.
A. Corporate entrepreneurship B. Strategy analysis C. Goal setting D. Organizational design
List and explain three "Greek" elements and impacts on a call option premium
What will be an ideal response?
A stock that you purchased at a price of $22 per share has risen to $46 per share. You wish to avoid losing all of your your profit while still allowing an opportunity for additional gains; therefore, you should put in a sell stop order at a price of
A) $22 per share. B) $40 per share. C) $47 per share. D) $53 per share.