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21 December, 20:45

Leslie Printing has net income of $26,310 for the year. At the beginning of the year, the firm had common stock of $55,000, paid-in surplus of $11,200, and retained earnings of $48,420. At the end of the year, the firm had total equity of $142,430. The firm paid dividends of $32,500. What is the amount of the net new equity raised during the year?

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  1. 21 December, 21:49
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    The amount of the net new equity raised during the year is $34,000.

    Explanation:

    Net new equity = total equity - common stock - paid-in surplus - (retained earnings + net income - paid dividends)

    = $142,430 - $55,000 - $11,200 - ($48,420 + $26,310 - $32,500)

    = $34,000

    Therefore, the amount of the net new equity raised during the year is $34,000.
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