Below Is Accounting Information for Cascade Company for 2010 What Was Total Equity for the Year?
A) $320,000
B)

question 198

Multiple Choice

Below is accounting information for Cascade Company for 2010:
$$\begin{array} { | l | r | } \hline \text { Revenue } & \$ 416,000 \\\hline \text { Cash } & \$ 120,000 \\\hline \text { Common Stock } & \$ 200,000 \\\hline \text { Expenses } & \$ 300,000 \\\hline \text { Equipment } & \$ 240,000 \\\hline \text { Accounts Receivable } & \$ 35,000 \\\hline \text { Notes Payable } & \$ 50,000 \\\hline \text { Notes Receivable } & \$ 62,000 \\\hline\end{array}$$
What was Total Equity for the year?

• A) $320,000
• B) $296,000
• C) $316,000
• D) $457,000
• E) $116,000

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Definitions:

Normal Cash Flows

A series of fixed cash flows that occur at regular intervals over a projected period.

Payback Method

A capital budgeting technique that calculates the time required to recoup the cost of an investment, focusing solely on cash flows.

Net Present Value (NPV)

A method used in capital budgeting to evaluate the profitability of an investment or project, by calculating the difference between the present value of cash inflows and outflows over a period of time.

Zero Cost of Capital

A theoretical situation where a company or project does not incur any cost to obtain and use capital, implying no interest expenses for debt or dividend expectations for equity.