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zheka24 [161]
1 year ago
15

Patterson Company reported stockholders’ equity of $75,000 at the beginning of the year. During the year, the company recognized

net income of $15,000. Stockholders made an additional investment of $10,000 at midyear and received a $5,000 dividend at year-end. The stockholders’ equity at the end of the year is:
Business
1 answer:
fiasKO [112]1 year ago
8 0

Answer:

stockholders equity at the end of the year is $95000

Explanation:

given data

equity = $75000

net income = $15000

additional investment = $10000

dividend = $5000

to find out

stockholders equity at the end of the year

solution

we will find here stockholders equity that is express as

stockholders equity = Net income + equity  - Dividends + Additional investment .....................1

put here value in equation 1 we get

stockholders equity = 15000 + 75000 - 5000 + 10000

stockholders equity = 95000

so stockholders equity at the end of the year is $95000

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