Consider the Above Statement of Cash Flows

question 18

Multiple Choice

Consider the above statement of cash flows. If all amounts shown above are in millions of dollars, what were AOS Industries' retained earnings for 2008?

• A)$5.2 million
• B)$2.2 million
• C)$4.4 million
• D)$3.1 million

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Definitions:

P = MC

An equation denoting the condition where the price of a good equals its marginal cost, typically associated with perfect competition and profit maximization.

Consumer Surplus

The difference between the total amount consumers are willing to pay for a good or service and the total amount they actually pay.

Product Value

The importance or usefulness of a product to a consumer, often reflected in their willingness to pay for it.

Producing More X

Increasing the output or manufacture of a specific product or commodity, referred to as "X".