Marcos Company Reported the Following Items on Its Financial Statements

question 116

Multiple Choice

Marcos Company reported the following items on its financial statements for the year ending December 31, 2016: ? $$\begin{array} { l r l r } \text { Sales } & \$ 560,000 & \text { Cost of goods sold } & \$ 400,000 \\\text { Salary expense } & 40,000 & \text { Interest expense } & 30,000 \\\text { Dividends } & 20,000 & \text { Income tax expense } & 25,000\end{array}$$ ?
How much will be reported as retained earnings on Marcos' balance sheet at December 31, 2016, if this is the first year of operations?

• A) $ 45,000
• B) $ 65,000
• C) $ 85,000
• D) Not enough information is provided.

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Definitions:

Influenza

A contagious respiratory illness caused by influenza viruses, leading to symptoms like fever, cough, and body aches.

Allergy

An immune system response to a foreign substance (allergen) that is not typically harmful to the body. This reaction can cause various symptoms, such as sneezing, itching, and swelling.

Itchy Eyes

A sensation that leads to the desire to rub the eyes, often caused by allergies, infections, or dryness.

Common Cold

A viral infection of the nose and throat, which is minor and self-limiting, characterized by sneezing, coughing, and a runny nose.