Financial Analysis of Vista Camera Services
Answer:
The total stockholders' equity at the end of the year is $35,000
Financial Analysis of Vista Camera Services
Vista Camera Services started the year with total assets of $100,000 and total liabilities of $55,000. Throughout the year, the company generated revenues amounting to $120,000 and incurred expenses of $80,000. Additionally, Vista Camera Services distributed dividends of $50,000 during the year.
To determine the amount of stockholders' equity at the end of the year, we need to follow these steps:
1. Calculate the beginning balance of stockholders' equity:
The formula is: Total assets = Total liabilities + stockholders' equity
Given that total assets = $100,000 and total liabilities = $55,000
We can calculate: stockholders' equity = $100,000 - $55,000 = $45,000
2. Calculate the ending balance of stockholders' equity:
The formula is: Ending stockholders' equity = Beginning stockholders' equity + Revenues - Expenses - Dividends paid
Plugging in the values: $45,000 + $120,000 - $80,000 - $50,000 = $35,000
Therefore, the total stockholders' equity at the end of the year for Vista Camera Services is $35,000.