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10. Pink Company gives you this incomplete information about its Stockholders' Equity section of the balance sheet: Common Stock is 1,000,000 shares issued at $1.00

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10. Pink Company gives you this incomplete information about its Stockholders' Equity section of the balance sheet: Common Stock is 1,000,000 shares issued at $1.00 par value: Additional Paid-in-Capital Common Stock is $39,000,000; Treasury Stock held by the company is $4,000,000; Total Stockholders' Equity is $54,000,000. What is the balance in Retained Earnings? a. $34,000,000 b. $10,000,000 c. $18,000,000 d. the balance cannot be determined with the information given 11. The debt-to-equity ratio is Total Liabilities/Total Stockholders' Equity. Mojo Company has this information: Current Assets are $500,000; Noncurrent Assets are $700,000; Current Liabilities are $400,000; Noncurrent Liabilities are ???, Stockholders' Equity is $300,000. Which statement about the debt-to-equity ratio is false? a. the debt-to-equity ratio gives an idea of financing from creditors compared to financing from owners b. the debt-to-equity ratio is a measure of solvency c. the debt-to-equity ratio is a measure of how much a company relies on debt d. this debt-to-equity ratio is 125% 12. One significant difference between IFRS and GAAP is: a. IFRS is issued by the European Union, while GAAP is issued by the U. S. government b. IFRS is more of a rules-based approach, while GAAP is more of a principles-based approach c. IFRS minimizes the needs of investors, while GAAP emphasizes the needs of investors d. IFRS does not allow the use of the LIFO inventory method, while GAAP does allow this method 13. Assume that Ending Inventory under LIFO was $800,000. The Beginning Inventory under LIFO was $675,000. The Ending Inventory under FIFO was $975,000. The Beginning Inventory under FIFO was $825.000. What is the balance in the LIFO Reserve at the end of the year? a. b. $175,000 $100.000 S150,000 $65,000

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