George Company Was Started on January 1, 2013, When It

question 128

Multiple Choice

George Company was started on January 1, 2013, when it acquired $8,000 cash by issuing common stock. During 2013, the company earned cash revenues of $3,500, paid cash expenses of $2,750, and paid a cash dividend of $300. Based on this information,

• A)The December 31, 2013 balance sheet would show total equity of $11,500.
• B)The 2013 income statement would show net income of $450.
• C)The 2013 statement of cash flows would show net cash inflow from operating activities of $750.
• D)The 2013 statement of cash flows would show a net cash flow from financing activities of $8,000.

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Definitions:

Labor Input

The amount of work effort, measured in hours or workforce size, used in the production of goods and services.

Marginal Product

The extra yield generated from the utilization of an additional unit of a specific input, with all other inputs remaining unchanged.

Specific Input

A specific input in production is one that is exclusively used in the production of a particular good or service, often leading to unique advantages or efficiencies.

Hourly Wage

The rate of pay for each hour worked, commonly used to compensate employees in many jobs.