Use the Following Information to Calculate for the Year Ended

question 114

Essay

Use the following information to calculate for the year ended December 31, 2022 (a) net income, (b) ending owner's equity, and (c) total assets. $\begin{array}{lrlr}\text { Supplies } & \$ 3,000 & \text { Revenues } & \$ 25,000 \\\text { Operating expenses } & 11,000 & \text { Cash } & 15,000 \\\text { Accounts payable } & 9,000 & \text { Drawings } & 1,000 \\\text { Accounts receivable } & 3,000 & \text { Notes payable } & 2,000 \\\text { Beginning capital } & 5,000 & \text { Equipment } & 8,000\end{array}$

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Definitions:

Profit-maximizing Output

The level of production at which a company achieves the highest possible profit.

Marginal Cost

The rise in overall expenses resulting from the production of an additional unit.

Marginal Revenue

The additional income from selling one more unit of a good; it is the change in total revenue from an additional unit sold.

Competitive Price-searcher

A market participant that actively seeks out and compares prices in order to find and exploit competitive price advantages.