Blazon Corporation's Retained Earnings Increased $79,000 During 2011

question 87

Multiple Choice

Blazon Corporation's retained earnings increased $79,000 during 2011.Blazon declared $19,000 of dividends and paid $15,000 of the dividends declared during 2011.How much was Blazon's 2011 net income assuming that Blazon's stockholders invested an additional $30,000 during 2011?

• A)$98,000
• B)$94,000
• C)$68,000
• D)$64,000

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Definitions:

Demand Increase

A rise in the quantity of a product or service that consumers are willing and able to purchase at a given price over a certain period of time.

Usury Laws

Regulations that impose a maximum interest rate that can be charged on loans to prevent excessive and unfair interest rates.

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, or the income earned on deposited funds.

Rent

A periodic payment made by a tenant to a landlord for the use of land, premises, or other property.