Midtown,Inc

question 12

Multiple Choice

Midtown,Inc.had the following transactions in 2018,its first year of operations: • Issued 31,000 shares of common stock.Stock has par value of $1.00 per share and was issued at $20.00 per share.
• Earned net income of $70,000.
• Paid no dividends.
At the end of 2018,what is total stockholders' equity?

• A) $31,000
• B) $690,000
• C) $620,000
• D) $70,000

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Definitions:

Minimize

To reduce something to the smallest possible level or amount.

Profits

The financial gains obtained when revenues exceed the costs and expenses incurred to operate the business.

Total Costs

The sum of all costs incurred by a business in producing a certain amount of goods or services.

Variable Costs

Costs that change in proportion to the level of goods or services a business produces.