Solved

Use This Balance Sheet and Income Statement to Answer the Following

question 83

Multiple Choice

Use this balance sheet and income statement to answer the following question.Use ending balances whenever average balances are required for computing ratios. $Use this balance sheet and income statement to answer the following question.Use ending balances whenever average balances are required for computing ratios. \begin{array}{c} \text {Abner Systems, Inc.}\\ \text {Income Statement}\\ \text {For the Year Ended December 31, 2010}\\\begin{array}{lr} \text { Net sales } & \$ 24,000 \\ \text { Costs of goods sold } & \underline{8,000} \\ \text { Gross margin } & \$ 16,000 \\ \text { Operating expenses } & \underline{8,000}\\ \text { Income before income taxes }&\$8,000 \\ \text { Income taxes }& \underline{3,200}\\ \text {Net income } & \$4,800 \end{array}\end{array} The total amount of working capital of Abner Systems is A) $0. B) $6,000. C) $2,000. D) $10,000.$ $\begin{array}{c}\text {Abner Systems, Inc.}\\\text {Income Statement}\\\text {For the Year Ended December 31, 2010}\\\begin{array}{lr}\text { Net sales } & \$ 24,000 \\\text { Costs of goods sold } & \underline{8,000} \\\text { Gross margin } & \$ 16,000 \\\text { Operating expenses } & \underline{8,000}\\\text { Income before income taxes }&\$8,000 \\\text { Income taxes }& \underline{3,200}\\ \text {Net income } & \$4,800 \end{array}\end{array}$ The total amount of working capital of Abner Systems is

Definitions:

Marriage

A legally or socially recognized union between two people as partners in a personal relationship, historically established as a means of forming family ties and social contracts.

Online Daters

Individuals who use internet-based services and platforms to find romantic or sexual partners.

Options

Financial instruments that give the holder the right, but not the obligation, to buy or sell an asset at a predetermined price within a specific time frame.

Satisfied

The feeling of contentment or pleasure in fulfilling desires or needs.