In reviewing the company's balance sheet, Andy noticed that the total asset is stated as $5,500,000 and the total liability is $3,250,000. There is no paid-in capital or value for common stock. What are the company's retained earnings?

The answer is $2,250,000

Explanation:

If is no paid-in capital or value for common stock, then company's stakeholders' equity will be the same as retained earnings.

Stakeholders' equity is the residual interest in a company after its liability has been deducted from asset.

Therefore, we have:

Stakeholders' equity = asset - liability.

Total asset is $5,500,000

Total liability is $3,250,000.

Stakeholders' equity will now be:

$5,500,000 - $3,250,000

=$2,250,000

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.