Marilu Company began the year with equity of $75,000. During the year, Marilu issued additional ordinary shares in exchange for cash of $105,000, recorded expenses of $300,000, and paid dividends of $20,000. If Marilu's ending equity was $230,000, what was the company's revenue for the year?

Question

Quizplus · Accepted Answer

Beginning Equity + Additional Share Issuance - Expenses - Dividends = Ending Equity
$75,000 + $105,000 - $300,000 - $20,000 = $230,000
Solving for revenue:
Revenue = Expenses + (Ending Equity - Beginning Equity - Additional Share Issuance + Dividends)
Revenue = $300,000 + ($230,000 - $75,000 - $105,000 + $20,000)
Revenue = $370,000

Marilu Company Began the Year with Equity of $75,000