The Following Question(s) Refer to the Year-End Account Balances for UBUS

question 47

Multiple Choice

The following question(s) refer to the year-end account balances for UBUS, Inc. The accounts are listed in alphabetical order, NOT in the order they appear on the financial statements. The applicable tax rate is 40%.
$\begin{array}{l}\text { UBUS Income Statement }\\\begin{array}{ll}\text { Cost of Goods Sold } & 330 \\\text { Depreciation Expense } & 35 \\\text { Interest Expense } & 20 \\\text { Operating Expense (excluding depreciation) } & 115 \\\text { Sales } & 600 \\\text { Tax } & ? ? ?\end{array}\end{array}$
$\begin{array}{l}\text { UBUS Balance Sheet }\\\begin{array}{ll}\text { Accounts Payable } & 35 \\\text { Accounts Receivable } & 65 \\\text { Accruals } & 30 \\\text { Accumulated Depreciation } & (175) \\\text { Cash } & 35 \\\text { Common Stock } & 120 \\\text { Fixed Assets (gross) } & 390 \\\text { Inventory } & 135 \\\text { Long Term Debt } & 200 \\\text { Retained Earnings } & 65\end{array}\end{array}$
-What is UBUS Inc.'s Total Equity?

• A)$115
• B)$120
• C)$185
• D)$205
• E)$240

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Definitions:

Torts

Civil wrongdoings recognized by law as grounds for a lawsuit, resulting in injury or harm to someone and constituting the basis for a claim by the injured party.

Misrepresent

To provide false or misleading representation of facts, often with the intention to deceive.

Independent Contractor

An individual or entity contracted to perform work for another entity as a non-employee, offering services to the public.

Control

The power or authority to direct, manage, oversee or govern individuals, organizations, or systems.