Calculation of amount of ending stockholder’s equity:
The amount of ending stockholder’s equity can be calculated with the help of following formula:
Ending stockholder’s equity = Beginning stockholder’s equity + Stockholder’s investments + Net Income –Dividends
We are given the following information:
Beginning stockholder’s equity = $297,000 Stockholder’s investments = $26,000
Net Income = $71,000
Dividends = $60,000
Hence we can calculate Ending stockholder’s equity as follows:
Ending stockholder’s equity = Beginning stockholder’s equity + Stockholder’s investments + Net Income –Dividends
Ending stockholder’s equity = 297000+26000+71000-60000 = 334,000
Hence the Ending stockholder’s equity is $334,000
