Anthony Corp

question 166

Essay

Anthony Corp.started business at the beginning of the year, with assets of $650,000 and stockholders' equity of $240,000.By the end of the year, assets increased by $80,000 and liabilities increased by $60,000.Other than net income or loss, the only change in stockholders' equity was dividends declared and paid of $55,000. A) What was the amount of Ramos Corp. stockhol ders' equity at the end of the year?
B) What was the amount of Ramos Corp. net income or net loss for the year?

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Definitions:

Resource Allocation

The process of distributing available resources among various projects or business units to maximize the effectiveness and efficiency of utilization.

Perfect Competition

A market structure characterized by a large number of small firms, identical products, and free entry and exit, leading to price-takers.

Marginal Revenue Product

The extra revenue generated from employing one additional unit of a resource.

Marginal Cost

The additional cost incurred by producing one more unit of a product, which can vary depending on the level of production.