Question

At the beginning of the year, Vendors, Inc., had owners' equity of $48,485. During the year, net income was $4,925 and the company paid dividends of $3,585. The company also repurchased $7,335 in equity. What was the owners' equity account at the end of the year? Multiple Choice $37.565 $47.310 $36.225 $41150

Answer 1

Answer: $42,490

Step-by-step explanation:

To determine the owners' equity at the end of the year, we need to consider the changes in net income, dividends, and equity repurchases.

Starting with the initial owners' equity of $48,485, we can calculate the adjustments as follows:

Net Income: +$4,925 (added to owners' equity)

Dividends: -$3,585 (subtracted from owners' equity)

Equity Repurchases: -$7,335 (subtracted from owners' equity)

Therefore, the calculation for the owners' equity at the end of the year is:

$48,485 + $4,925 - $3,585 - $7,335 = $42,490

Based on the provided options, none of the choices match the calculated owners' equity of $42,490. It seems there might be an error in the answer choices.