The Following Are Included in Ace Auto Parts, Inc Analyze the Changes in These Balances and Determine Net Income

question 75

Essay

The following are included in Ace Auto Parts, Inc.'s December 31, 2016 balance sheet: $$\begin{array}{l}\begin{array} { | l | r | } \hline \text { Accounts Receivable } & \$ 50,000 \\\hline \text { Building } & 100,000 \\\hline \text { Cash } & 60,000 \\\hline \text { Land } & 130,000 \\\hline \text { Accounts Payable } & 40,000 \\\hline \text { Notes Payable } & 70,000 \\\hline \text { Stockholders' Equity } & ? \\\hline\end{array}\\\text { Below are the balances for December 31, 2016: }\\\begin{array} { | l | r | } \hline \text { Accounts Receivable } & \$ 90,000 \\\hline \text { Building } & 100,000 \\\hline \text { Cash } & 150,000 \\\hline \text { Land } & 130,000 \\\hline \text { Accounts Payable } & 60,000 \\\hline \text { Notes Payable } & 50,000 \\\hline \text { Stockholders' Equity } & \text { ? } \\\hline\end{array}\end{array}$$ Analyze the changes in these balances and determine net income for 2017, assuming that the only change to stockholders' equity is from net income.

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Definitions:

Sellers

Parties that provide products or services available for purchase in the market.

Mutual Interdependence

A situation in which the actions of one firm significantly affect the outcomes of other firms in the market, commonly seen in oligopolistic industries.

Perfectly Inelastic Demand

A situation where the quantity demanded does not change in response to changes in price.

Pricing Policy

A company's approach to setting the prices for its products or services, often based on costs, market demand, competition, and other factors.