Mofro's Computer Repair Shop started the year with total assets of $300,000 and total liabilities of $200,000.During the year, the business recorded $500,000 in computer repair revenues, $300,000 in expenses, and Mofro paid dividends of $50,000.Mofro's stockholders' equity changed by what amount from the beginning of the year to the end of the year?

Question

Quizplus · Accepted Answer

Mofro's net income for the year is calculated as revenues minus expenses, which is $500,000 - $300,000 = $200,000. The change in stockholders' equity is the net income minus dividends paid, which is $200,000 - $50,000 = $150,000.

Mofro's Computer Repair Shop Started the Year with Total Assets