Changes in Account Balances of Multi-Plus Inc Assuming That There Were No Charges to Retained Earnings Other

question 1

Multiple Choice

Changes in account balances of Multi-Plus Inc.during 2012 were:
$\begin{array}{lc}&\underline{\text { Increase }}\\\text { Assets } & \$ 420,000 \\\text { Liabilities } & 125,000 \\\text { Capital Stock } & 100,000 \\\text { Additional Paid-In Capital } & 140,000 \\\text { Retained Earnings } & ?\end{array}$
Assuming that there were no charges to retained earnings other than dividends of $62,000,the net income for 2010 was:

• A)($7,000)
• B)$55,000
• C)$117,000
• D)$257,000
• E)none of the answers are correct

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