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Economics
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A balance sheet shows:

A) revenues, liabilities, and stockholders' equity.

B) expenses, dividends, and stockholders' equity.

C) revenues, expenses, and dividends.

D) assets, liabilities, and stockholders' equity.

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Joshua Stredder
Joshua StredderLv10
4 Apr 2021

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Related questions

Resources owned by a business are referred to as:

a. stockholder's equity

b. assets

c. liabilities

d. revenues


Marion has just received the year-end financial statements shown below. Evaluate the state of her company from the perspective of shareholders. What should Marion conclude based on this, and what possible actions can be recommended?
Marion's, Inc.
Income Statement 2012 Cash Flow Statement
Revenue $3,906,000 Balance Forward $212,500
Returns, Credits, etc. ($1,400) Net Income $124,480
Net Sales (Revenue) $3,904,600 Depreciation $75,000
Direct Costs Change in Working Capital ($17,140)
Labor ($1,450,000) Capital Expenditures ($70,000)
Materials ($989,000) Financial Activities ($75,000)
Cost of Goods Sold (COGS) ($2,439,000) Net change in cash $37,340
Gross Margin $1,465,600 Ending Cash Balance $249,840
Selling General and Admin.
Marketing ($400,000)
Research and Development ($350,000)
Administration ($250,000)
Other ($200,000)
Depreciation ($75,000)
S G & A ($1,275,000)
Earnings Before Interest and Taxes (EBIT) $190,600
Interest Expense/Income ($35,000)
Pre-tax Income $155,600
Income Tax @ 20% ($31,120)
Net Income $124,480
Balance Sheets, 2011
Assets Liabilities
Current Assets Current Liabilities
Cash $249,840 Accounts Payable $125,000
Accounts receivable $60,160 Taxes Payable $10,000
Finished Goods Inventory $40,000 Total Current Liabilities $135,000
Materials Inventory $85,000 Long Term Liabilities
Total Current Assets $435,000 Bank Loans @ 6% $125,000
Mortgage @ 4.5% $460,000
Long term Assets Total Long Term Liabilities $585,000
Buildings $1,050,000
Equipment and machines $80,000 Capital Stock $650,000
Other $100,000 Retained Earnings $295,000
Total Fixed Assets $1,230,000 Stockholders Equity $945,000
Total Assets $1,665,000 Total Liabilities and Stockholders equity $1,665,000
Current Stock Price $44.25
Current Outstanding Shares 5,000

Which of the following is true about retained earnings?

A) they are considered to cost the same as equity capital when used to finance a project

B) they are considered to be essentially free to the company for investment in projects since it is using its own money

C) retained earnings are always paid out in dividends to stockholders.

D) retained earnings are cheaper to use for funding projects than bonds but more expensive than equity

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