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29 March, 05:10

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:

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  1. 29 March, 05:19
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    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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