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

question 95

Multiple Choice

Lena Company has provided the following data (ignore income taxes) : 2014 revenues were $99,000.
2014 expenses were $47,800.
Dividends declared and paid during 2014 totaled $9,500.
Total assets at December 31, 2014 were $177,000.
Total liabilities at December 31, 2014 were $89,000.
Common stock at December 31, 2014 was $28,000.
Which of the following is correct?

• A) 2014 net income was $41,700.
• B) Total stockholders' equity at December 31, 2014 was $236,000.
• C)Retained earnings at December 31, 2014 were $60,000.
• D)Retained earnings at December 31, 2014 were $41,700.

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Definitions:

Specialization

Division of productive activities so that no one is self-sufficient.

Self-Sufficient

The ability of an individual, household, or nation to meet all their needs without external assistance or trade.

Standard of Living

A measure of the wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.

Importing

The process of importing products or services from other countries for the purpose of selling them domestically.