Jerry's Shop had the following assets and liabilities at the beginning and end of the current year: AssetsLiabilitiesBeginning of the year $114,000$68,000End of the year135,00073,000If there were no stockholder investments or dividends paid during the year, what was the amount of net income earned by Jerry's Shop?
What will be an ideal response?
Beginning equity = $114,000 - $68,000 = $46,000
Ending equity = $135,000 - $73,000 = $62,000
Increase in equity = $62,000 - $46,000 = $16,000
Because there were no stockholder investments or dividends during the year, net income is $16,000.
You might also like to view...
Which of the following does not describe an approach for buying national brand merchandise?
A. Vendors meeting with buyers at their offices to review and reorder last week's best sellers B. Buyers meeting national brand vendors in wholesale market centers C. Buyers using reverse auctions to procure seasonal merchandise D. Buyers attending trade shows to see the latest products and styles E. Buyers discussing the performance of the vendor's merchandise during the previous season
What does the learning theory teach marketers about demand for products?
What will be an ideal response?
Types of Assurance Engagements What is the difference between reasonable assurance engagements and limited assurance engagements?
Discrimination again short people, tall people, or divorced persons is known as subtle discrimination
Indicate whether the statement is true or false