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22 July, 16:04

Torres Travel's stockholders' equity at the beginning of March 2022 was $200,000. During the month, the company earned net income of $50,000 and paid dividends of $10,000. At the end of March 2022, what is the amount of stockholders' equity?

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  1. 22 July, 17:23
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    At the end of March 2022, the amount of stockholders' equity is $240,000

    Explanation:

    The net income of $50,000 increases the amount of stockholders' equity:

    stockholders' equity + net income = $250,000

    And the paid dividends of $10,000 decreases the amount of stockholders' equity:

    stockholders' equity - paid dividends = $240,000
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