At the End of Its First Year of Operations,Lockerbie and Role

question 207

Multiple Choice

At the end of its first year of operations,Lockerbie and Role Company has total assets of $3,000,000 and total liabilities of $1,200,000.The owner originally invested $200,000 in the business,but has not made any further investments or taken any withdrawals.What is the first year's net income for Lockerbie and Role Company?

• A) $1,600,000.
• B) $1,800,000.
• C) $1,000,000.
• D) $3,000,000.
• E) $3,200,000.

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Definitions:

Durable Goods

Products that are not consumed or destroyed in use and thus have a long life-span, such as cars and appliances.

Marketing Actions

Specific steps or strategies undertaken by companies to promote and sell products or services to target audiences.

New Product Development

A process used by companies to conceptualize, design, develop, and finally launch a new product in the market.

Nondurable Good

A product that is consumed or has a short life span, typically less than three years, such as food, fuel, or paper products.