Soccer Starz, Inc

question 65

Multiple Choice

Soccer Starz, Inc. started the year with a balance of retained earnings of $25 million and ended the year with retained earnings of $32 million. The company paid dividends of $2 million to the preferred stock holders and $6 million to common stock holders. What was Soccer Starz's net income for the year?

• A) $7 million
• B) $15 million
• C) $40 million
• D) $49 million

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Definitions:

FMVSS-121

Refers to the Federal Motor Vehicle Safety Standard related to air brake systems, ensuring the performance and safety of heavy vehicles.

Psi

Pounds per square inch. Standard measure of pressure values used in North America. One psi is equivalent to 6.9 kPa (metric measure of pressure). Also known as gauge pressure.

Slack Adjuster

A component in a vehicle's braking system that automatically adjusts the brakes as they wear down to maintain proper brake performance.

Brake Chamber Pushrod

A brake chamber pushrod is a component of a pneumatic brake system, translating the force from the brake chamber to the brake mechanism to slow or stop the vehicle.