Question

Zapper has beginning equity of $279,000, net income of $62,000, dividends paid of $51,000 and stockholder investments of $17,000. Its ending equity is:

Answer 1

$307,000

Step-by-step explanation:

Equity is the remaining value of the owner;s interest in a company after all liabilities have been settled.

It can also be defined as the capital contributed by the owners and the attributable profit or losses after a trading period that is retained in the entity.

The net income and the stockholder investment , being an inflow ,will be added to the beginning equity while the dividends paid being an outflow is deducted.

Workings

Ending equity = Beginning equity + net income +Stockholder investment - Dividends paid

=279,000+62,000+17,000-51,000

307,000