Question 1
We are analyzing Stretch Pilates Inc that has published the following data at the end of 2020 (ignore income taxes):
• 2020 revenues were $93,000.
• 2020 expenses were $50,200.
• Dividends declared and paid during 2020 totaled $9,300.
• Total assets at December 31, 2020 were $201,000.
• Total liabilities at December 31, 2020 were $122,000.
• Common stock at December 31, 2020 was $43,000.
Which of the following is not correct?
A Total liabilities and stockholders' equity at December 31, 2020 was $201,000.
B Total stockholders' equity at December 31, 2020 was $79,000.
C Retained earnings on December 31, 2020 were $33,500.
D 2020 net income was $42,800.