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Unformatted text preview: rrent liabilities and no long-term liabilities. The company
had issued stock when it was first formed in 2001 for $10,000, and no stock had been issued since that time. During 2010, Valentino
paid dividends of $6,000. How much was its net income for 2010 if the company ended the year with $88,000 in stockholders' equity?
e None of the above Use the following information to answer questions 6 and 7:
Thankful Corporation borrowed $45,000 on July 1, 2010. The company must repay the amount borrowed plus $12,000 in interest on
July 1, 2014. 10 Which of these statements is the most accurate?
a The Balance Sheet shows the amount of revenue that will be earned in future periods as cash is collected from customers.
b The Balance Sheet shows the amount of net income earned minus dividends paid since the company began in business.
c The Balance Sheet shows how much revenue was earned during the current period.
d The Balance Sheet shows the gross profit of a company.
e The Balance Sheet sh...
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This note was uploaded on 09/11/2012 for the course BUS 100 taught by Professor Mo during the Spring '08 term at Indiana.
- Spring '08