Question
1. Review the following facts for four separate companies. Identify the two companies that lost money during the year, explaining how you reached your conclusion
1. Review the following facts for four separate companies. Identify the two companies that lost money during the year, explaining how you reached your conclusion for each.
COMPANY A Ending retained earnings was less than beginning retained earnings and dividends were twice as much as income during the year.
COMPANY B Ending retained earnings was more than beginning retained earnings, but the company issued stock in an amount greater than the increase in retained earnings; no dividends were declared or paid.
COMPANY C No stock was issued and no dividends were declared or paid; total liabilities went up more than total assets.
COMPANY D Expenses exceeded revenues, but the company issued additional shares of stock in an amount that exceeded the difference between revenues and expenses.
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