At January 1, 2012, Alligator Industries reported owners equity of $130,000. During 2012, Alligator had a net loss of $30,000 and owner drawings of $15,000. At December 31, 2012, the amount of owners equity is

1. $85,000.

2. $100,000.

3. $115,000.

4. $145,000.

Operating Margins cannot be greater than 95%.

1. True
2. False

1. a company had retained earnings of $60,000 at the beginning of the year, net earnings of $50,000, and a year ending retained earnings of $90,000, it paid its owners a dividend at some point during the year.

   1. True
   2. False