Nguyen Company began the year with equity of $434,000. During the year, Nguyen issued ordinary shares for $588,000, recorded expenses of $1,680,000, and paid dividends of $112,000. If Nguyen's ending equity was $1,062,000, what was the company's revenue for the year?

Question

Quizplus · Accepted Answer

The change in equity is calculated as: Ending Equity = Beginning Equity + Issued Shares + Revenue - Expenses - Dividends. Plugging in the values: $1,062,000 = $434,000 + $588,000 + Revenue - $1,680,000 - $112,000. Solving for Revenue gives $1,832,000.

Nguyen Company Began the Year with Equity of $434,000