Below is the common equity section (in millions) of Timeless Technology's last two year-end balance sheets 2014
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Question:
Below is the common equity section (in millions) of Timeless Technology's last two year-end balance sheets
| 2014 | 2013 | |
|---|---|---|
| Common stock | $2,000 | $1,000 |
| Retained earnings | $2,000 | $2,340 |
| Total common equity | $4,000 | $3,340 |
The firm has never paid a dividend to its common stockholders. Which of the following statements is correct?
Group of answer choices
The company's net income in 2014 was higher than in 2013
The firm issued common stock in 2014
The market price of the firm's stock doubled in 2014
The firm had positive net income in both 2013 and 2014, but its net income in 2014 was lower than it was in 2013
The company has more equity than debt on its balance sheet
Expert Answer:
The common equity section of Timeless Technologys last two yearend balance sheets is as follows 2014 Common stock 2000 million Retained earnings 2000 ... View the full answer
Related Book For 
Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
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