Inca Company Reports Current E&P of Negative $100,000 in 20X3

question 73

Multiple Choice

Inca Company reports current E&P of negative $100,000 in 20X3 and accumulated E&P at the beginning of the year of $200,000. Inca distributed $300,000 to its sole shareholder on January 1, 20X3. How much of the distribution is treated as a dividend in 20X3?

• A) $0.
• B) $100,000.
• C) $200,000.
• D) $300,000.

Identify what comparative financial statements entail and their purpose.

Calculate and interpret the working capital, current ratio, and understand their implications on a company’s liquidity.

Analyze financial statements using vertical analysis techniques, including common-sized financial statements.

Comprehend the concept and utility of horizontal analysis.

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