Mary Company Had the Following Data Available What Is the Balance in Retained Earnings on December 31,2015

question 28

Multiple Choice

Mary Company had the following data available:
$\begin{array} { l } \text {Paid-in capital, December 31, 2014 }&\$43,000 \\ \text { Retained earnings, December 31,2014}&\$27,000 \\ \text { Net income for the year ended December 31,2015 }&\$ 35,400\\ \text { Dividends declared in 2015}&\$ 20,000\\\end{array}$

What is the balance in Retained Earnings on December 31,2015?

• A) $23,400
• B) $42,400
• C) $52,400
• D) $66,400

Understand and apply the concept of capacity in various business scenarios.

Compute and understand the impact of fixed and variable costs on profit.

Apply probability concepts in decision making under uncertainty.

Understand the theory of constraints and its application in process improvement.

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Definitions:

Due Diligence

The comprehensive appraisal of a business or individual prior to signing a contract, or an act with a certain standard of care.

Culture Management

The practice of developing and nurturing a specific set of behaviors, values, and practices within an organization.

Lower Absenteeism

Efforts or strategies aimed at reducing the number of occurrences where employees are absent from work without a good reason.

Mismanagement of Culture

Refers to the failure in effectively understanding, integrating, or valuing cultural differences within an organization, leading to conflicts and inefficiencies.