AOL and Final Exam Practice 2023 with 100% correct answers

Stosch Company's balance sheet reported assets of $77,000, liabilities of $22,000 and common stock of $19,000 as of December 31, Year 1. If Retained Earnings on the balance sheet as of December 31, Year 2, amount to $46,000 and Stosch paid a $21,000 dividend during Year 2, then the amount of net income for Year 2 was which of the following? - correct answer$31,000. Explanation: If assets on December 31, Year 1 totaled $77,000, total claims (including liabilities, common stock, and retained earnings) on that date must have also been $77,000. If liabilities were $22,000 and common stock was $19,000, retained earnings on December 31, Year 1 must have been $36,000. At the end of Year 2, the company reported $46,000 in retained earnings, a $10,000 increase. During Year 2, Stosch paid a $21,000 cash dividend, which reduced retained earnings. Therefore, Year 2 net income must have been $10,000 greater than the dividend paid. $21,000 + $10,000 = $31,000. Jackson Company had a net increase in cash from operating activities of $9,900 and a net decrease in cash from financing activities of $3,850. If the beginning and ending cash balances for the company were $4,900 and $14,800, then net cash change from investing activities was: - correct answeran inflow or increase of $3,850. Explanation: Beginning cash balance + Increase from operating activities - Decrease from financing activities +/- Increase or decrease from inve