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Homework answers / question archive / Bravo Company experienced a total increase in stockholders' equity of $14,000 during the current year

Bravo Company experienced a total increase in stockholders' equity of $14,000 during the current year

Accounting

Bravo Company experienced a total increase in stockholders' equity of $14,000 during the current year. Stockholders' equity was increased by additional issuances of $50,000 capital stock during the year. No dividends were paid. Expenses incurred during the year were $115,000.

How much was Bravo's revenue for the year?

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Bravo's revenue for the year was $79,000.

Explanation: Bravo Company experienced a total increase in stockholders' equity of $14,000 during the current year and Stockholders' equity was increased by additional issuances of $50,000 capital stock during the year which means that the company has incurred the net loss of $36,000 ($50,000 - $14,0000). As expenses incurred during the year were $115,000 hence it has been interpreted that the company earned a revenue of $79,000 ($115,000 - $36,000).