Vista Camera Services started the year with total assets of

Vista Camera Services started the year with total assets of $110,000 and total liabilities of $45,000. The revenues and the expenses for the year amounted to $120,000 and $90,000, respectively

During the year, the company did not issue any common stock, but it distributed dividends of $50,000. What is the amount of stockholders’ equity at the end of the year?
A) $90,000
B) $120,000
C) $45,000
D) $50,000

ANSWER

C .Equity (ending balance) = Equity (beginning balance) – Dividends + Revenues – Expenses