Torres travel's stockholders' equity at the beginning of march 2014 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 2014, what is the amount of stockholders' equity?

Question

Business

Guest

31 August, 06:52

Torres travel's stockholders' equity at the beginning of march 2014 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 2014, what is the amount of stockholders' equity?

+5

Answers (1)

Know the Answer?

Dixie Wiley · Answer 1

Calculation of the amount of stockholders' equity at the end of March 2014:

The amount of stockholders' equity at the end of the period can be calculated using the following formula:

Stockholders' equity at the end of the period = Stockholders' equity at the beginning of the period + Net Income earned during the period - Dividend declared and paid during the period

= 200,000+50,000-10,000

= 240,000

Hence, the amount of stockholders' equity at the end of March 2014 is $240,000.