Bleu Berri Farms had equity of $58,900 at the beginning of the year.During the year, the company earned net income of $8,200 and paid $2,500 in dividends.Also during the year, the company repurchased $3,500 of stock from one of its shareholders.What is the value of the owners' equity at year end?

Question

Quizplus · Accepted Answer

The ending equity is calculated as beginning equity plus net income minus dividends and stock repurchase: $58,900 + $8,200 - $2,500 - $3,500 = $61,100.

Bleu Berri Farms Had Equity of $58,900 at the Beginning