Following Is a List of Account Balances of Nabers Delivery

question 117

Multiple Choice

Following is a list of account balances of Nabers Delivery Services as of December 31, after the first year of operations. $$\begin{array} { | l | r | } \hline \text { Accounts Receivable } & \$ 5,000 \\\hline \text { Accounts Payable } & 5,000 \\\hline \text { Salaries Expense } & 4,000 \\\hline \text { Repairs Expense } & 600 \\\hline \text { Truck } & 9,000 \\\hline \text { Equipment } & 10,000 \\\hline \text { Notes Payable } & 8,500 \\\hline \text { Cash } & 11,500 \\\hline \text { Supplies Expense } & 1,400 \\\hline \text { Service Revenue } & 31,000 \\\hline \text { Gasoline Expense } & 3,200 \\\hline \text { Salaries Payable } & 200 \\\hline\end{array}$$ What is the amount of total liabilities at the end of the year?

• A) $13,700
• B) $22,900
• C) $19,700
• D) $13,500

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Definitions:

Synergy Value

The additional value created from combining two entities, often resulting in increased efficiency or market power.

NPV

Net Present Value (NPV) is a financial metric that calculates the present value of all future cash flows (positive and negative) from an investment, discounted back to the present value.

Stock Financing

The process of raising capital through the sale of shares in a company, providing investors with partial ownership and potential dividends.

Incremental Value

The additional value generated by undertaking a specific action or project, compared to not doing so.