Mr Husker's Tuxedos, Corp

question 46

Multiple Choice

Mr. Husker's Tuxedos, Corp. began the year 2018 with $205 million in retained earnings. The firm earned net income of $30 million in 2018 and paid $5 million to its preferred stockholders and $12 million to its common stockholders. What is the year-end 2018 balance in retained earnings for Mr. Husker's Tuxedos?

• A) $193,000,000
• B) $200,000,000
• C) $213,000,000
• D) $218,000,000

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Definitions:

Customer Acquisition

The process of bringing new customers to a business through various marketing strategies and efforts.

Profitability

The ability of a business to earn a profit, which occurs when revenues exceed the costs and expenses involved in operating the business.

New Customers

Individuals or organizations that have recently started purchasing goods or services from a business, expanding the business's client base.

Profitability Metrics

Financial measures used to assess a company's ability to generate profit relative to its revenue, assets, or equity.