Use the Following Information for Questions 144-146

question 215

Multiple Choice

Use the following information for questions 144-146.
Stahl Consulting started the year with total assets of $20,000 and total liabilities of $5,000. During the year, the business recorded $16,000 in catering revenues and $8,000 in expenses. Stahl made an additional investment of $3,000 and withdrew cash of $5,000 during the year.
-The net income reported by Stahl Consulting for the year was

• A) $16,000.
• B) $11,000.
• C) $8,000.
• D) $3,000.

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Definitions:

Debt-equity Ratio

A measure representing the balanced usage of debt and shareholders' equity in funding company assets.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, showcasing efficiency in managing expenses versus income.

Growth Determinant

Factors that contribute to the economic expansion of a country, region, or industry, impacting productivity and development.

Cash Coverage Ratio

Cash coverage ratio is a financial metric that measures a company’s ability to pay its debt obligations with its operating cash flow.