The First Year of Operations for a Company Was Year

question 133

Multiple Choice

The first year of operations for a company was Year 1.The net income for Year 1 was $20,000 and dividends of $12,000 were paid.In Year 2,the company reported net income of $34,000 and paid dividends of $5,000.At the end of Year 1,the company had total assets of $150,000.At the end of Year 2,the company had total assets of $240,000. What was the amount of retained earnings at the end of Year 1?

• A)$20,000
• B)$8,000
• C)$150,000
• D)$155,000

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Definitions:

Hazardous Chemicals

Substances that pose a risk to health, safety, or the environment, requiring careful handling, storage, and disposal to prevent harm.

Sewing Machines

Mechanical or electronic devices used to stitch fabric or other materials together.

Trade Deficit

A situation where a country's imports exceed its exports during a specific period, leading to a net outflow of domestic currency to foreign markets.

Net Exports

The value of a country's total exports minus its total imports; a measure of a nation's foreign trade balance.