Timothy McGreggor, Attorney, P. C., began the year with total assets of $129,000, liabilities of $77,000, and stockholders' equity of $52,000. During the year, the business earned revenue of $113,000 and paid expenses of $34,000. The business also paid cash dividends of $63,000. How much is the business's equity at year-end?

Question

Business

Cynthia Knapp

12 August, 02:02

Timothy McGreggor, Attorney, P. C., began the year with total assets of $129,000, liabilities of $77,000, and stockholders' equity of $52,000. During the year, the business earned revenue of $113,000 and paid expenses of $34,000. The business also paid cash dividends of $63,000. How much is the business's equity at year-end?

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Jenkins · Answer 1

Ending stockholders' equity $ 68.000

Explanation:

The net income for the year is Revenue - Expenses

so $ 113,000 - $34,000 = Net Income $ 79,000

Stockholders Equity at end of year

Opening stockholders' equity $ 52,000

Add: Net income for the year $ 79,000

Less: Dividends Paid $ (63,000)

Ending stockholders' equity $ 68,000