Casper, Inc

question 87

Multiple Choice

Casper, Inc. has total assets of $250,000, total debt of $50,000, and 50,000 shares of common stock with a book value of $115,000 as of the beginning of their fiscal year. During the year the
Company produced taxable income of $138,000. The company also paid quarterly dividends of $.40
A share during the year. The tax rate is 35%. What is the amount of the retained earnings at the end
Of the fiscal year?

• A) $74,700
• B) $75,300
• C) $94,700
• D) $143,000
• E) $154,700

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Definitions:

Maturity Date

The maturity date is the specified date on a financial instrument at which the principal (or final payment) is due to be paid to the holder.

Retained Earnings

The portion of a company's net income that is not distributed to shareholders as dividends but is retained by the company to reinvest in its core business or to pay debt.

Accounts Payable

The amounts owed by a business to its suppliers or creditors for goods and services received but not yet paid for.