23 December, 10:17

# Vista Camera Services started the year with total assets of \$ 100 comma 000 and total liabilities of \$ 55 comma 000. The revenues and the expenses for the year amounted to \$ 120 comma 000 and \$ 80 comma 000 , respectively. During the year, the company did not issue any common stock, but it distributed dividends of \$ 50 comma 000. What is the amount of stockholders' equity at the end of the year?

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1. 23 December, 11:58
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The amount of stockholders' equity at the end of the year is \$35,000

Explanation:

For computing the ending balance of the stockholder equity, first we have to compute the beginning balance of equity which is shown below:

Total assets = Total liabilities + stockholder equity

\$100,000 = \$55,000 + stockholder equity

So, stockholder equity = \$100,000 - \$55,000

= \$45,000

Now the ending balance of stockholder equity would equal to

= Opening balance of stockholder equity + revenues - expenses - dividend paid

= \$45,000 + \$120,000 - \$80,000 - \$50,000

= \$35,000