Question

On january 1 of the current year, jimmy's sandwich company reported stockholders’ equity totaling $132,500. during the current year, total revenues were $115,000 while total expenses were $104,500. also, during the current year paid $39,000 in cash dividends. no other changes in equity occurred during the year. if, on december 31 of the current year, total assets are $215,000, the change in total stockholders’ equity during the year was:

Answer 1

The change in the stockholders' equity during the given year was $111,000. Working out the math, if you take the $132,500 reported investor equity at the beginning of the year and add the $115,000 in total revenues to that, minus the $104,500 in expenses and $39,000 in cash dividends you get $104,000. Take the total calculated assets of $215,000 at the the end of the year, subtract the difference between $215,000 and $104,000 and the answer is $111,000.