The Following Information Was Provided from the Records of Nimble

question 138

Multiple Choice

The following information was provided from the records of Nimble Limited,which began operations in the current year:

What was the company's pre-tax income for the year?

• A)$116,000
• B)$121,000
• C)$138,000
• D)$169,000

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Definitions:

Excess Cash

Funds that exceed the normal operating needs of a company, potentially available for investment or distribution to shareholders.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from its total revenue.

Stock Dividend

A payment to shareholders in the form of additional shares instead of cash.

Retained Earnings

Retained earnings refer to the portion of net income that is retained by the corporation rather than distributed to its shareholders as dividends.