Maxine's Bakery Recorded $220,000 in Revenues, $165,000 in Expenses, and $30,000

question 45

Multiple Choice

Maxine's Bakery recorded $220,000 in revenues, $165,000 in expenses, and $30,000 of dividends for the year.The company began the year with total assets of $190,000 and stockholder's equity of $87,000.
-Use the information above to answer the following question.Suppose that liabilities increased by $60,000 and stockholders' equity increased by $25,000.What would be the change in Maxine's assets?

• A) $112,000 increase
• B) $85,000 increase
• C) $103,000 increase
• D) $35,000 increase

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Definitions:

Bethlehem Hospital

An historical institution in London, known as Bedlam, originally a hospital dedicated to mental illness treatment.

Mentally Ill Persons

Individuals who experience significant disruptions in their thinking, feeling, mood, or behavior, associated with distress or impaired functioning.

Psychoanalysis

An insight therapy based on the theory of Freud, emphasizing the revealing of unconscious conflicts; Freud’s term for both the theory of personality and the therapy based on it.

Psychological Difficulties

Challenges and conditions that affect mental health, emotion regulation, and daily functioning.