Madrid Company Has Provided the Following Data (Ignore Income Taxes)

question 38

Multiple Choice

Madrid Company has provided the following data (ignore income taxes) : 2019 revenues were $77,500.
2019 net income was $33,900.
Dividends declared and paid during 2019 totaled $5,700.
Total assets at December 31,2019 were $217,000.
Total stockholders' equity at December 31,2019 was $123,000.
Retained earnings at December 31,2019 were $83,000.
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Which of the following is correct?

• A)2019 expenses were $37,900.
• B)Total liabilities at December 31,2019 were $11,000.
• C)Retained earnings increased $28,200 during 2019.
• D)Common stock at December 31,2019 was $206,000.

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Definitions:

Home Country

The country in which a multinational company is headquartered or where an individual originates from.

Guest Workers

Foreign workers invited to perform needed labour.

Indirect Costs

Expenses not directly tied to the production of goods or services, such as overhead costs in administration, utilities, and marketing.

Transnational Teams

Teams composed of members of multiple nationalities working on projects that span multiple countries.