Asked by Elizaveta Alagoz on May 17, 2024
Verified
Letty Company began the year with owner's equity of $105000. During the year Letty received additional owner investments of $147000 recorded expenses of $420000 and had owner drawings of $28000. If Letty's ending owner's equity was $290000 what was the company's revenue for the year?
A) $458000.
B) $486000.
C) $605000.
D) $633000.
Owner's Equity
Owner's equity represents the owner's claim to the assets of a business after all liabilities have been subtracted.
Owner Investments
Owner investments, also known as owner contributions, refer to money or other assets that owners put into their business for its use.
Revenues
The total income generated from normal business operations and other activities before any expenses are subtracted.
- Work out the owner's shareholding value, digging into components including income after expenses, external funding, and private withdrawals.
- Calculate the bottom line by offsetting expenses against revenues.
Verified Answer
Learning Objectives
- Work out the owner's shareholding value, digging into components including income after expenses, external funding, and private withdrawals.
- Calculate the bottom line by offsetting expenses against revenues.
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