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On January 1 of the current year,Jimmy's Sandwich Company reported total stockholders' equity of $122,500.During the current year,total revenues were $96,000 while total expenses were $85,500.Also,during the current year the company paid $20,000 in dividends.No other changes in equity occurred during the year.The change in total equity during the year was:
A) A decrease of $9,500.
B) An increase of $9,500.
C) An increase of $30,500.
D) A decrease of $30,500.
E) An increase of $73,500.
Stockholders' Equity
The residual interest in the assets of a corporation after deducting its liabilities, representing ownership interest.
Total Revenues
The complete income received by a company from its fundamental operations, such as selling goods or offering services.
Dividends
Earnings distributed to shareholders, typically in the form of cash or additional shares, from a company's profits.
- Understand the impact of stockholder investments and dividends on financial statements.
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Learning Objectives
- Understand the impact of stockholder investments and dividends on financial statements.
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