Lena Company Has Provided the Following Data (Ignore Income Taxes)

question 15

Multiple Choice

Lena Company has provided the following data (ignore income taxes) : 2016 revenues were $99,000.
2016 expenses were $47,800.
Dividends declared and paid during 2016 totaled $9,500.
Total assets at December 31, 2016 were $177,000.
Total liabilities at December 31, 2016 were $89,000.
Common stock at December 31, 2016 was $28,000.
Which of the following is not correct?

• A)2016 net income was $51,200.
• B)Total stockholders' equity at December 31, 2016 was $88,000.
• C)Total liabilities and stockholders' equity at December 31, 2016 was $177,000.
• D)Retained earnings on December 31, 2016 were $41,700.

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Definitions:

Technology Change

The process by which new technologies are developed and introduced, resulting in changes to production processes, products, and industry standards.

Labor Employment

The engagement of workers in the workforce to perform tasks in exchange for wages or salaries.

Marginal Product

The additional output produced as a result of utilizing one more unit of a particular input.

Marginal Revenue

The additional income received from selling one more unit of a good or service.