Marilu Company began the year with equity of $30,000.During the year, Marilu issued additional ordinary shares in exchange for cash of $42,000, recorded expenses of $120,000, and paid dividends of $8,000.If Marilu's ending equity was $92,000, 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: $92,000 = $30,000 + $42,000 + Revenue - $120,000 - $8,000. Solving for Revenue gives $148,000.

Marilu Company Began the Year with Equity of $30,000