Flash has beginning equity of $257,000, net income of $51,000, withdrawals of $40,000 and investments by owners of $6,000. Its ending equity is:
A) $223,000.
B) $240,000.
C) $268,000.
D) $274,000.
E) $208,000.

Question

Quizplus · Accepted Answer

Ending equity is calculated as beginning equity plus net income, plus investments by owners, minus withdrawals. So, $257,000 + $51,000 + $6,000 - $40,000 = $274,000.

Flash Has Beginning Equity of $257,000, Net Income of $51,000