The Following Data Was Compiled for Hard-Rock Concrete Company

question 79

Multiple Choice

The following data was compiled for Hard-Rock Concrete Company:

Required
Compute the operating income for 2011 and 2012.Next,compute the revenue effect in growth and indicate whether the growth in favorable,F,or unfavorable,U.

• A)2011=$3,960,000;2012=$236,000;$2,974,000 F
• B)2011=$2,856,000;2012=$1,360,000;$3,025,000 U
• C)2011=$4,105,000;2012=$131,000;$4,236,000 U
• D)2011=$3,241,000;2012=$126,000;$4,250,000 U
• E)2011=$3,025,000;2012=$125,000;$4,250,000 F

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Definitions:

Journal Entries

Recorded business transactions in the accounting ledger, detailing the financial effects on the company's accounts.

Stated Value

A value assigned to no-par value stock by the company's board of directors to define a minimum legal capital.

Common Stock

A type of equity security that represents ownership in a corporation, with rights to vote on corporate policy and receive dividends.

Cash

Liquid currency held by a business for transactions, operational expenses, and other immediate needs.