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

question 47

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 not correct?

• A) 2014 net income was $51,200.
• B) Total stockholders' equity at December 31, 2014 was $88,000.
• C)Total liabilities and stockholders' equity at December 31, 2014 was $177,000.
• D)Retained earnings on December 31, 2014 were $41,700.

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Definitions:

Expected Value

The weighted average of all possible values of a random variable, representing the long-term average outcome of a given situation if it were to be repeated many times.

Simple Linear Regression

A statistical method for estimating the relationship between two quantitative variables, allowing predictions of one variable given the other.

True Correlation

The actual degree of a linear relationship between two variables, excluding any error or distortion.

Linear Relationship

A type of correlation where there is a constant change rate between two variables, indicative of a straight line when graphed.