Question 7

Not yet answered

During 2018, the assets of Johnson Corp. increased by $175,000 and the liabilities decreased by $15,000. If the owners' equity in the business is $475,000 at the end of the year, the owners' equity at the beginning of the year must have been:

Select one:

A. $285,000

B. $335,000

C. $615,000

D. $665,000

Question 8

To arrive at net sales:

Select one:

A. Add sales discounts to sales.

B. Subtract the cost of goods sold from the sales price.

C. Subtract sales returns and sales discounts from sales.

D. Subtract accounts receivable from sales.

Question 9

Everglades Construction reports net sales of $625,000, gross profit of $275,000, and net income of $15,000. The company's cost of goods sold is:

Select one:

A. $335,000.

B. $350,000.

C. $340,000.

D. $325,000.

Question 10

Financial statements are designed primarily to:

Select one:

A. Provide managers with detailed information tailored to the managers' specific information needs.

B. Indicate to investors in a particular company the current market values of their investments.

C. Report to the Internal Revenue Service the company's taxable income.

D. Provide people outside the business organization with information about the company's financial position and operating results.