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Firm C has Total Assets of $ 4,000,000. The firm’s Owners Equity at the beginning of...

Firm C has Total Assets of $ 4,000,000. The firm’s Owners Equity at the beginning of the year was $2,800,000. The firm’s Net Income for the year was $ 400,000 and Dividends totaled $ 200,000… There was no Owners Investment for the year. Assuming that this information was for year ended 12/31/2007, please present the firm’s Statement of Owners Equity.

Solutions

Expert Solution

Firm C
Statement of Owner's Equity
For the year ended 12/31/2007
Owners Equity at the beginning of the year                     28,00,000
Add: Net Income for the year                       4,00,000
Sub Total                     32,00,000
Less: Dividend paid                       2,00,000
Owners Equity at the end of the year                     30,00,000

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