BHM Inc has total assets of 14100 and total liabilities of 3

BHM Inc. has total assets of $14,100 and total liabilities of $3,800 at the beginning of the year. It issues $2,000 of common stock during the year.. The company has net income of $7,700 and pays out dividends of $2,400.

What is the total equity at the end of the year?

Solution

Beginning equity = Beginning total assets-Beginning total liabilities = 14100-3800 = 10300 Add: Common stock issued 2000 Add: Net income 7700 Less: Dividends paid -2400 Total equity at the end of the year 17600 Answer