Smith Company had the following on the dates indicated:
12/31/16 12/31/16
Total Assests $60,000 $330,000
Total Liabilities 35,000 25,000
Smith had no stock transactions in 2016; thus, the change in stockholders' equity for 2016 was due to net income and dividends. If dividends were $70,000, how much was Smith's net income for 2016? Use the accounting equation and the statement of retained earnings.
a. $220,000
b. $290,000
c. $150,000
d. $360,000
Answers
Answer: b. $290,000
Explanation:
Assets = Liabilities + Equity
Change in Assets = Change in liabilities + Change in Equity
560,000 - 330,000 = 35,000 - 25,000 + Change in equity
230,000 = 10,000 + Change in equity
Change in Equity = 230,000 - 10,000
= $220,000
Retained earnings = Change in equity + dividends
= 220,000 + 70,000
= $290,000
Related Questions
Categorizing U.S. taxes
Which of the following taxes are regressive?
a) A sales tax that adds 5% to the sale of all items
b) The U.S. payroll tax (a constant tax on wages up to a certain amount, after which the marginal tax rate is 0%) is a tax.
c) The U.S. income tax
Answers
Answer:
A
Explanation:
A regressive tax is a tax system where the same tax rate is applied uniformly. As a result, those earning less income are taxed higher than those earning more income.
Sales tax is an example of a regressive tax.
If sales tax is 5%. Worker A earns $100 and worker B earns $1000. Both buy a good worth $50 before tax. the sales tax is worth $2.5.
The tax comprises $2,5 / 100 = 2.5% of worker A's income and $2,5 / $1000 = 0.025% of Worker B's income.
It can be seen that worker A who earns less income is taxed higher
Which of the following statements accurately describe the phases of a business cycle?
A. A contraction phase is when an economy exhibits decreasing levels of production and consumption.
B. A period of expansion is when an economy exhibits decreasing levels of production and spending.
C. A trough occurs at the end of the contraction phase and the beginning of the expansion phase
D. A peak level of business activity occurs at the end of the expansion phase and the beginning of the contraction phase.
Answers
Answer:
Option A
Explanation:
In simple words, contraction relates to a period of the market cycle throughout which the market is in recession as a group When the economic cycle rises, a recession usually occurs, just before it reaches a trough. A contraction is triggered by three kinds of occurrences. We are talking of a sharp spike in borrowing rates a banking crash, or uncontrolled inflation . Paranoia and anxiety replace assurance.
Wages have risen in Europe since the 1970s and workers work substantially less than they did 40 years ago. Does this suggest that income effects or substitution effects dominate?
a. Income effect
b. Substitution effect
Answers
Answer:
The correct answer is A. Income effect .
Explanation:
In consumer theory, the income effect is the change in consumption that is due to a change in the consumer's real income, that is, his or her purchasing power. Thus, the fact that wages have increased notably, while working time has been reduced during the same period of time, is a clear sign that the working hour of each man within the productive circuit has today in day a purchasing power much higher than what it had in the past.
Assume the economy of Ucheland is currently at full employment. The government of Ucheland reduces the tax rate on household interest earnings.
a. What will happen to private savings in Ucheland?
b. Draw a correctly labeled graph of the loanable funds market, and show the effect of the change in private savings identified in part (a) on the equilibrium real interest rate.
Answers
Answer:
a) since the tax rate oh household interest earnings increases, the number of households that will save money will increase, and the households that were already saving money might increase the amount saved. As a result, private savings will increase in Ucheland.
b) see attached image
Which option identifies the concept represented in the following scenario? Winn-Dixie has acquired the nine Gooding's grocery stores in Florida.
- vertical consolidation
- horizontal consolidation
- oligopolistic consolidation
- monopolistic consolidation
Answers
Answer:
oligopolistic consolidation
Answer:
maybe vertical
Explanation:
Comment with your agreement or disagreement (and why) on the following quote; include in your answer a discussion of what the CEO’s role should be in setting ethical standards and in enforcing ethical behavior: ""Value statements serve as a cornerstone for culture building; a code of ethics serves as a cornerstone for developing a corporate conscience.""
Answers
Answer:
agreed
Explanation:
In simple words, the modern business environment is such that an unethical firm will not survive for long in the market. Thus, it is mandatory for firms to be ethical in every way. A CEO of a company represents the company and can considerations the face of the entity, thus, his or her authority obliges him or her to act and make others act in an ethical manner.
The value statements and code of ethics should be considered as must for the operative activities as it serves as a code of conduct for followers.
What is the mental and physical effort made by humans for the production of goods and services?
Labor
Capital
Land
Entrepreneurship
Answers
I think it’s LABOUR if I guessed it ryt