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:

Marginal Tax Rate

The rate at which the last dollar of income is taxed, representing the percentage of tax applied to your next dollar of taxable income.

Gross Domestic Product

The total value of all goods and services produced over a specific time period within a country's borders.

Federal Government

The national government of a federated state, which encompasses the overall governing institutions and political authority of the country.

Unfunded Mandates

Regulations or new laws passed by governments that require a lower level of government or private entities to perform certain actions, with no financial support provided for these requirements.