Question

12. Information disclosed in a balance sheet about shares of common stock includes the number of shares that are: A) Authorized and issued. B) issued and Outstanding C) Authorized, issued, and Outstanding D) Authorized, issued, Outstanding, and Not Outstanding 13. Denmark Inc. is preparing a statement of stockholders' equity for 2019. On January 1, 2019, Denmark started the year with a $100,000 credit balance in its retained earnings account. During 2019, the company earned net income of $70,000 and declared dividends of $10,000. Also, the company received cash of $15,000 as an additional investment by its owners. What is the balance in retained earnings on December 31, 2019? A) $100.000 B) $170,000 C) $175.000 D) $160,000. 14. The Callie Company has provided the following information Operating expenses were $231,000; Cost of goods sold was $376,000, Net sales were $940,000; Interest expense was $32,000; Gain on sale of investments was $76,000; Income tax expense was $151,000. What was Callie's income from operations (operating income)? A) $188,000 B) $333,000 C) $156,000 D) $232,000. 15. The Nellie Company has provided the following information: Operating expenses were $115,000; Gross profit was $629,000; Cost of goods sold was $470,000; Interest expense was $17,000; Income tax expense was $199,000 What was Nellie's income before taxes? A) $514,000 B) $612,000. C) $497,000 D) $298.000

Answer 1

12	A) Authorised and issued
13	D) 160,000	(100,000+70,000-10,000)
14	B) 333,000	Net sales	$940,000
		COGS	$376,000
		Gross profit	$564,000
		Operating expense	$231,000
		Operating income	$333,000
15	C) $497,000	Net Sales	$1,099,000
		Gost of goods sold	$470,000
		Gross profit	$629,000
		Operating expense	$115,000
		Interest expense	$17,000
		Income before tax	$497,000
		Income tax	$199,000
		Net income	$298,000

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