Fill in the Missing Information by Determining the Amounts Represented $\text { Income statement }$

question 150

Short Answer

Fill in the missing information by determining the amounts represented by letters a - d.
$\text { Income statement }$
$\begin{array}{lr}\text { Revenue } & \$ a \\\text { Expense } & 6,200 \\\text { Iet income } & \$ b\end{array}$

$\text { Statement of Changes in Stockholders' Equity }$

$\begin{array}{lr}\text { Beginning common stock } & \$ 0 \\\text { Plus: Issuance of common stock } & 11,000 \\\text { Ending common stock } & 11,000\\\text { Beginning retained earnings } & \$ 0 \\\text { Add: net income } & 3,500 \\\text { Ending retained earnings } & \$ \mathrm{~c} \\ \text { Total stockholders' equity } & \$ \mathrm{~d}\end{array}$

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Definitions:

Specialization of Labor

The division of labor where individuals or groups focus on specific tasks or jobs, increasing efficiency and productivity.

Diminishing Marginal Returns

Diminishing marginal returns occur when the increase in output from adding an additional unit of input decreases, holding all other inputs constant.

Long-run Average Total Cost

The average cost per unit of output when all inputs, including capital, can be varied, and economies of scale are realized fully.

Unit Costs

The cost incurred by a business to produce, store, and sell one unit of a particular product or service.