Question

Splish Brothers Inc. started the year with total assets of $322000 and total liabilities of $262000. During the year the business recorded $635000 in revenues, $329000 in expenses, and dividends of $57000. Stockholders’ equity at the end of the year was:

Answer 1

Answer:

Ending Equity 235,000

Explanation:

assets = liabilities + equity

We post our know values to solve for equity

322,000 = 262,000 + equity

322,000 - 262,000 = equity

beginning equity 60,000

net income = revenues - expenses

635,000 - 329,000 = 232,000 net income

dividends 57,000

beginning equity + net income - dividends = ending equity

60,000 + 232,000 - 57,000 = 235,000 ending equity