Chocolate Heaven, Inc. had a balance of $200 000 in shareholders' equity at the end of last year (i.e. 31 December). During this year, the company recorded a net profit of $50 000, distributed dividends of $30 000, and borrowed $10 000. What was the company's shareholders' equity at the end of this year as at 31 December?
A) $200 000
B) $210 000
C) $220 000
D) $230 000

Question

Quizplus · Accepted Answer

Starting equity: $200 000
Add net profit: +$50 000
Subtract dividends: -$30 000
Add borrowed funds: +$10 000
Ending equity: $220 000