How do you calculate the 'Capital stock at the end of the year' with the following information?
Revenues: $375,000
Expenses: $297,000
Net Income: $78,000
Retained earnings at the beginning of the year: 0
Retained earnings at the end of the year: $68,000
Liabilities at the end of the year: $225,000
Assets at the end of the year: $393,000
Thanks in advance for the help!
To calculate the capital stock at the end of the year, you need to use the formula:
Capital Stock = Assets - Liabilities
In this case, the Assets at the end of the year are given as $393,000, and the Liabilities at the end of the year are given as $225,000.
So, to calculate the Capital Stock at the end of the year, you subtract the Liabilities from the Assets:
Capital Stock = $393,000 - $225,000 = $168,000
Therefore, the Capital Stock at the end of the year is $168,000.