Moore Industries
Moore Industries began operations on January 2, 2017, with an investment of $50,000 by each of its two stockholders. Net income for its first year of business was $240,000. Moore Industries paid a total of $100,000 in dividends to its stockholders during the year.

-Read the information about Moore Industries.If the company's revenues were $500,000 for the year ended December 31,2017,how much were total expenses?
A)$160,000
B)$260,000
C)$640,000
D)$740,000

Question

Moore Industries
Moore Industries began operations on January 2, 2017, with an investment of $50,000 by each of its two stockholders. Net income for its first year of business was $240,000. Moore Industries paid a total of $100,000 in dividends to its stockholders during the year.

-Read the information about Moore Industries.If the company's revenues were $500,000 for the year ended December 31,2017,how much were total expenses?
A)$160,000
B)$260,000
C)$640,000
D)$740,000

Quizplus · Accepted Answer

The information provided doesn't give us the exact amount of total expenses. However, we can use the formula:
Total Expenses = Revenues - Net Income
Assuming a net income of $100,000 (not provided in the given information), we can calculate:
Total Expenses = $500,000 - $100,000
Total Expenses = $400,000
Therefore, option B ($260,000) is the closest choice to our calculated value of $400,000. The other options are either too low or too high, and do not provide a reasonable approximation for the total expenses of the company.

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