Question

Zapper has beginning equity of $265,000, net income of $55,000, dividends of $44,000 and stockholder investments of $10,000. its ending equity is:

Answer 1

Answer: Ending equity is $286,000

We have:

Beginning Equity (BE) = $265000

Net Income (NI) = $55000

Dividends (D) = $44000

Stockholder Investments (SI) = $10000

$Ending Equity = BE + NI - D +SI$

$Ending Equity = 265000 + 55000 - 44000 +10000$

$Ending Equity = 286000$