Madrid Company has provided the following data (ignore income taxes): 2000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Question 6
Madrid Company has provided the following data (ignore income taxes):
• 2020 revenues were $77,500;
• 2020 net income was $33,900;
• Dividends declared and paid during 2020 totaled $5,700,
• Total assets on December 31, 2020 were $217,000,
• Total stockholders' equity on December 31, 2020 was $123,000;
• Retained earnings on December 31, 2020 were $83,000.
Which of the following is not correct?
Retained earnings increased $33,900 during 2020.
Total liabilities on December 31, 2012 were $94,000.
Contributed capital on December 31, 2020 was $40,000.
2020 expenses were $43,600.
4
Transcribed Image Text:Question 6 Madrid Company has provided the following data (ignore income taxes): • 2020 revenues were $77,500; • 2020 net income was $33,900; • Dividends declared and paid during 2020 totaled $5,700, • Total assets on December 31, 2020 were $217,000, • Total stockholders' equity on December 31, 2020 was $123,000; • Retained earnings on December 31, 2020 were $83,000. Which of the following is not correct? Retained earnings increased $33,900 during 2020. Total liabilities on December 31, 2012 were $94,000. Contributed capital on December 31, 2020 was $40,000. 2020 expenses were $43,600. 4
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