Relevant Account Balances for Martinez Corporation Are $\underline{\text { Income information for } 2017}$

question 78

Multiple Choice

Relevant account balances for Martinez Corporation are:
$\begin{array}{lrr}&12/31/17&1/01/17\\\text { Accounts receivable } & \$ 18,000 & \$ 14,000 \\\text { Inventory } & 24,000 & 26,000 \\\text { Prepaid insurance } & 1,500 & 2,100 \\\text { Accounts payable } & 25,000 & 26,000\end{array}$

$\underline{\text { Income information for } 2017}$
$\begin{array}{l}\text { Revenue } &&\$120,000\\\text { Cost of goods sold } & \$ 60,000 \\\text { Insurance expense } & 6,000 \\\text { Operating expenses } & 18,000 \\\text { Depreciation } &\underline{ 10,000}&\underline{94,0000} \\\text { Net income }&&\underline{\$26,000}\end{array}$

How much cash was paid for insurance during 2017?

• A)$5,400
• B)$6,000
• C)$6,600
• D)$ 600

---

Definitions:

Average Number

The result obtained by adding several quantities together and then dividing this total by the number of quantities; the arithmetic mean.

Woman

is an adult human female.

Fertility-Rate Calculations

The computation of the average number of children that would be born to a woman over her lifetime in a specific population.

Replacement Rate

In economics, the ratio of a person's retirement income to their pre-retirement income, often focused on social security benefits.