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15 June, 21:25

Centro-matic Company began the year with stockholders' equity of $15,000. During the year, Centro-matic issued additional shares of stock in exchange for cash of $21,000, recorded expenses of $60,000, and paid dividends of $4,000. If Centro-matic's ending stockholders' equity was $65,000, what was the company's revenue for the year?

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  1. 15 June, 21:38
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    The company's revenue for the year was $93,000

    Explanation:

    Ending Stockholder's equity = Opening Stockholder's equity + Share Issued during the year + Revenue for the year - Costs of the year - Dividend Payment for the year

    $65,000 = $15,000 + $21,000 + Revenue for the year - $60,000 - $4,000

    $65,000 = $36,000 + Revenue for the year - $64,000

    $65,000 = Revenue for the year - $28,000

    Revenue for the year = $65,000 + $28,000

    Revenue for the year = $93,000

    So, The company's revenue for the year was $93,000.
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