Beemer Corporation Has Provided the Following Information Pertaining to the Year

question 96

Multiple Choice

Beemer Corporation has provided the following information pertaining to the year ended December 31,2011:
Stockholders' equity as of January 1 was $789,000.
Dividends declared during the year totaled $71,000 of which $60,000 were paid during the year.
Stockholders invested $113,000 cash into the business in exchange for new shares of stock.
Stockholders' equity as of December 31 was $1,030,000.
How much was Beemer's 2011 net income?

• A)$210,000
• B)$199,000
• C)$312,000
• D)$323,000

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Definitions:

Utilities

Services such as water, electricity, gas, and sewer services provided to consumers and businesses.

Allocate

The process of assigning or distributing resources or amounts to various accounts or periods.

Square Footage

The measurement of area, especially used in reference to the size of a building or room, calculated in square feet.

Contribution Margin

The amount remaining from sales revenue after all variable expenses have been deducted.