Packard Company Engaged in the Following Transactions During Year 1

question 95

Multiple Choice

Packard Company engaged in the following transactions during Year 1, its first year of operations: (Assume all transactions are cash transactions.) 1) Acquired $950 cash from the issue of common stock.2) Borrowed $420 from a bank.3) Earned $650 of revenues.4) Paid expenses of $250.5) Paid a $50 dividend. During Year 2, Packard engaged in the following transactions: (Assume all transactions are cash transactions.) 1) Issued an additional $325 of common stock.2) Repaid $220 of its debt to the bank.3) Earned revenues of $750.4) Incurred expenses of $360.5) Paid dividends of $100.
The amount of assets on Packard's Year 2 balance sheet is

• A)$2,115.
• B)$440.
• C)$2,215.
• D)$395.

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Definitions:

Corporate Culture

The shared values, beliefs, and practices that characterize an organization and influence its members' behavior.

Operational Objective

Specifies the short-term, specific aims that guide the operations of an organization towards its strategic goals.

Stable Product Domain

A market segment or industry characterized by consistent demand and relatively small changes over time.

Market Domain

The specific area or segment of the market that an organization targets or operates within, defined by its customers, products, and competitors.