Useful Organizing Began Operations on January 1,20X3,when the Owners Invested

question 2

Multiple Choice

Useful Organizing began operations on January 1,20X3,when the owners invested $80,000 cash in the company.Also on January 1,the company paid for a $30,000 machine.The machine has a useful life of 4 years and a $2,000 residual value.During its first year of operations,the company had sales of $96,000 and operating expenses except depreciation of $67,000.All sales were cash sales and all non-depreciation operating expenses were paid in cash.Useful Organizing has a 30% tax rate and pays all taxes on December 31.What is the cash balance after taxes on December 31,20X3,if Useful Organizing uses straight-line depreciation?

• A)$55,300
• B)$72,400
• C)$72,550
• D)$94,050
• E)$94,400

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Definitions:

Business Cycle Theories

Various economic theories that attempt to explain the causes and dynamics of the business cycle, including expansions and contractions in economic activity.

Endogenous

Originating from within an economic model or system; refers to factors that are explained by the internal workings of the model.

Exogenous

Factors or variables that are external to the economic model and not determined within the model itself.

Frictional Unemployment

Frictional unemployment is short-term and voluntary unemployment that occurs when people are between jobs or entering the workforce for the first time, often due to personal choices or circumstances.