Use the Following Data to Determine the Total Dollar Amount

question 118

Multiple Choice

Use the following data to determine the total dollar amount of assets to be classified as investments. Carne Auto Supplies
Balance Sheet
December 31, 2017
$\begin{array}{lrlr}\text { Cash } & \$ 70,000 & \text { Accounts payable } & \$ 130,000 \\\text { Accounts receivable } & 100,000 & \text { Salaries and wages payable } & 20,000 \\\text { Inventory } & 140,000 & \text { Mortgage payable } & 180,000 \\\text { Prepaid insurance } & 80,000 & \text { Total liabilities } & \$ 330,000 \\\text { Stock investments } & 180,000 & &\\\text { Land } & 190,000 \\\text { Buildings } \quad \$ 230,000 &&\text { Common stock }&\$240,000\\\text { Less: Accumulated }&&\text { Retained earnings }&500,000\\\text { depreciation }\quad(60,000) &170,000&\text { Total stockholders' equity }&\$740,000\\\text { Trademarks } & 140,000&\text { Total liabilities and }\\\text { Total assets }&\$1,070,000&\text { stockholders' equity }&\$1,070,000\end{array}$

• A)$0
• B)$320,000
• C)$180,000
• D)$280,000

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Definitions:

Z-score

A measure that describes a value's relationship to the mean of a group of values, represented in units of standard deviation.

Third Quartile

The value that divides the top 25% of a data set from the bottom 75%, often used as a measure of data spread.

Quartile

A type of quantile which divides the range of a probability distribution into four intervals of equal probability, used in describing the spread of a dataset.

GMT

Greenwich Mean Time, the mean solar time at the Prime Meridian in Greenwich, London, used as a global time standard.