The following data pertains to Greenwold Manufacturing.Total assets at January 1,20X9,were $290,000; at December 31,20X9,total assets were $334,000.During 20X9,sales were $995,000; cash dividends declared were $10,000; and operating expenses (exclusive of cost of goods sold)were $545,000.Total liabilities at December 31,20X9,were $128,000; at January 1,20X9,total liabilities were $105,000.There was no additional paid-in capital during 20X9.What was the amount of stockholders' equity as of January 1,20X9?
A)$450,000
B)$440,000
C)$185,000
D)$635,000
E)$175,000

Question

Quizplus · Accepted Answer

Stockholders' equity can be calculated using the following formula:
Stockholders' Equity = Total Assets - Total Liabilities
Using the data provided:
As of January 1, 20X9:
Stockholders' Equity = $290,000 - $105,000 = $185,000
As of December 31, 20X9:
Stockholders' Equity = $334,000 - $128,000 = $206,000
Therefore, the amount of stockholders' equity as of January 1, 20X9 was $185,000 (option C).

The Following Data Pertains to Greenwold Manufacturing