Lopez Corporation Began Operations at the Start of 20C

question 109

Essay

Lopez Corporation began operations at the start of 20C.During the year,it made cash and credit sales totalling $974,000 and collected $860,000 in cash from its customers.It purchased inventory costing $508,000,paid $25,000 for dividends and the cost of goods sold was $445,000.The corporation incurred the following expenses:
Required:
1.Prepare an income statement showing revenues,expenses,pretax profit,income tax expense,and profit for the year ended December 31,20C.
2.Based on the above information,what is the amount of trade receivables on the statement of financial position prepared at the end of 20C?
3.Based on the above information,what is the amount of retained earnings on the statement of financial position prepared at the end of 20C?

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Definitions:

Government Weaknesses

Government weaknesses refer to the limitations, inefficiencies, and flaws within the structure and functioning of a government, which can hinder its effectiveness and service to the public.

Democratic Republic

A form of government where supreme power lies with citizens who vote for representatives to make laws and policies on their behalf, combining elements of democracy and republicanism.

Totalitarianism

A political system where the state recognizes no limits to its authority and strives to regulate every aspect of public and private life.

Authoritarianism

A form of government characterized by strong central power and limited political freedoms. Individual freedoms are subordinate to the state and there is no constitutional accountability under an authoritarian regime.