At the Beginning of the Year, Paid-In Capital Was $164

question 53

Multiple Choice

At the beginning of the year, paid-in capital was $164 and retained earnings was $94.During the year, the stockholders invested $48 and dividends of $12 were declared and paid.Retained earnings at the end of the year were $104. Net income for the year was:

• A)$20
• B)$22
• C)$30
• D)$40

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Definitions:

Break-Even Point

The level of sales at which total revenues equal total costs, resulting in no profit or loss for the business.

Dollar Sales

A metric that represents the total monetary value of all sales transactions within a specific period, often used in retail and sales analysis.

Target Profit

The desired level of profit that a business plans to achieve within a specific period.

Contribution Format

A format for income statements where all variable expenses are subtracted from sales to calculate contribution margin, which then has fixed expenses subtracted to determine net operating income.