If net income for a company was $50,000, $20,000 in cash dividends were paid and the shareholders invested $10,000 in cash, the stockholders' equity increased by $40,000.

Name: If net income for a company was $50,000, $20,000 in cash dividends were paid and the shareholders invested $10,000 in cash, the stockholders' equity increased by $40,000.
Brand: Quizplus
Rating: 4.7 (32 reviews)

Question

Quizplus · Accepted Answer

Increase in the stockholders' equity = Net income for the year - Cash dividends + Shareholders' investment = $50,000 - $20,000 + $10,000 = $40,000

If Net Income for a Company Was $50,000, $20,000 in Cash