Zapper has beginning equity of $297,000, net income of $71,000, dividends of $60,000 and stockholder investments of $26,000. its ending equity is:

Calculation of amount of ending stockholder’s equity:

The amount of ending stockholder’s equity can be calculated with the help of following formula:

Ending stockholder’s equity = Beginning stockholder’s equity + Stockholder’s investments + Net Income –Dividends

We are given the following information:

Beginning stockholder’s equity = $297,000 Stockholder’s investments = $26,000

Net Income = $71,000

Dividends = $60,000

Hence we can calculate Ending stockholder’s equity as follows:

Ending stockholder’s equity = Beginning stockholder’s equity + Stockholder’s investments + Net Income –Dividends

Ending stockholder’s equity = 297000+26000+71000-60000 = 334,000

Hence the Ending stockholder’s equity is $334,000

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