Question

Yellow Enterprises reported the following ($ in 000s) as of December 31, 2018. All accounts have normal balances. Deficit (debit balance in retained earnings) $ 1,000 Common stock 2,500 Paid-in capital-treasury stock 1,600 Treasury stock at cost 390 Paid-in capital—excess of par 31,600 During 2019 ($ in 000s), net income was $10,400; 25% of the treasury stock was resold for $510; cash dividends declared were $740; cash dividends paid were $410. What ($ in 000s) was shareholders' equity as of December 31, 2019? Multiple Choice $44,710. $44,300. $44,480. $45,480.

Answer 1

$44,480

	(figure in 000s)
Stockholders’ equity
Common stock	$2,500
Paid-in capital–excess of par	$31,600
Paid-in capital-treasury stock	$1,600
	$35,700
Less:Retained earnings	$1,000
Treasury stock	$390
Total stockholders’ equity		$34,310
Shareholders’ equity 12/31/2018 (determined above)	$34,310
Net Income	$10,400
Sale of treasury stock	$510
Dividends declared	-$740
Shareholders’ equity 12/31/2019	$44,480