Financial Analysis of Vista Camera Services

What is the financial position of Vista Camera Services at the end of the year?

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.

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