Question

Centro-matic Company began the year with stockholders' equity of $15,000. During the year, Centro-matic issued additional shares of stock in exchange for cash of $21,000, recorded expenses of $60,000, and paid dividends of $4,000. If Centro-matic's ending stockholders' equity was $65,000, what was the company's revenue for the year?

Answer 1

The company's revenue for the year was $93,000

Step-by-step explanation:

Ending Stockholder's equity = Opening Stockholder's equity + Share Issued during the year + Revenue for the year - Costs of the year - Dividend Payment for the year

$65,000 = $15,000 + $21,000 + Revenue for the year - $60,000 - $4,000

$65,000 = $36,000 + Revenue for the year - $64,000

$65,000 = Revenue for the year - $28,000

Revenue for the year = $65,000 + $28,000

Revenue for the year = $93,000

So, The company's revenue for the year was $93,000.