Leslie Printing Has Net Income of $26,310 for the Year

question 65

Multiple Choice

Leslie Printing has net income of $26,310 for the year.At the beginning of the year,the firm had common stock of $55,000,paid-in surplus of $11,200,and retained earnings of $48,420.At the end of the year,the firm had total equity of $142,430.The firm does not pay dividends.What is the amount of the net new equity raised during the year?

• A)$1,500
• B)$2,500
• C)$2,700
• D)$48,420
• E)$48,310

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Definitions:

Direct Labor

The cost of wages for employees who are directly involved in the production of goods or the provision of services.

Direct Materials Price Variances

The difference between the actual cost of direct materials used in production and the standard cost expected to be used, showing how effectively materials costs are managed.

Direct Labor Rate Variances

The difference between the expected cost of direct labor per unit of production and the actual cost incurred.

Work in Process

Partially finished goods that are still in the production process at a specific point in time.