Arch Associates Reports the Following Comparative Balance Sheets and Income

question 79

Multiple Choice

Arch Associates reports the following comparative balance sheets and income statement information.The amount of cash collected from customers during Year 2 was: Arch Associates
Comparative Balance Sheets
$$\begin{array}{l}\begin{array} {| l | l | l | } \hline &12/31/2013&12/31/2014\\\hline \text {Cash }&\$ 12,000&\$ 22,000\\\hline \text {Accounts receivable}&4,000&8,000 \\\hline \text {Prepaid insurance }&10,000&8,000 \\\hline \text {Inventory }&6,000& 2,000\\\hline \text {Property, plant and equipment }&12,000&10,000\\\hline \text {Total assets }&\$ 44,000&\$ 50,000\\\hline \text { }&\\\hline \text { Accounts payable } &\$ 8,000& \$ 12,000\\\hline \text { Salaries payable } &10,000&4,000\\\hline \text { Long term notes payable } & 8,000&6,000 \\\hline \text { Stockholders' equity }& 18,000 &28,000 \\\hline \text { Total liabilities and equity } &\$ 44,000&\$ 50,000\\\hline\end{array}\end{array}$$ NEED TO MAKE CHANGES TO TABLE
Change 12/31/13 to:
12/31/Year 1
Change 12/31/14 to:
12/31/Year 2
$$\begin{array} { | l | r | } \hline { \text { Income Statement } } \\\hline { \text { Year Ended 12/31/14 } } \\\hline \text { Revenue } & \$ 70,000\\\hline \text { Cost of goods sold } & 40,000 \\\hline \text { Gross margin } & 30,000\\\hline \text { Operating expense } & 20,000 \\\hline \text { Net income } &\$ 10,000 \\\hline\end{array}$$ NEED TO MAKE CHANGES TO TABLE
Change 12/31/14 to:
12/31/Year 2

• A)$66,000.
• B)$62,000.
• C)$74,000.
• D)$70,000.
• NEED TO MAKE CHANGES TO TABLE
• Change 12/31/13 to:
• 12/31/Year 1
• Change 12/31/14 to:
• 12/31/Year 2
• NEED TO MAKE CHANGES TO TABLE
• Change 12/31/14 to:
• 12/31/Year 2

---

Definitions:

Self-Construction

The process by which individuals form and develop their personal identity and sense of self.

Self-Discrepancy

A theory that describes how a mismatch among the actual, ideal, and ought selves relates to psychological discomfort or emotional distress.

Self-Verification

Seeking out information that verifies and confirms what we already know about ourselves.

Prototypes

Generalized and idealized examples of categories or concepts that capture their most typical features.