Kelly Company Has Total Assets, Liabilities, and Shareholders' Equity of $32,000

question 32

Multiple Choice

Kelly Company has total assets, liabilities, and shareholders' equity of $32,000, $17,000, and $15,000, respectively at the beginning of 2018. If Kelly reports revenues of $130,000, expenses of $80,000, and pays dividends of $30,000, how much is shareholders' equity at the end of 2018?

• A)$35,000
• B)$53,000
• C)$44,000
• D)Not enough information to determine.

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Definitions:

Entrepreneur

An individual who creates, organizes, and operates a business venture, taking on greater than normal financial risks in order to do so.

Business Plan

A formal document detailing a business's objectives, strategies, target market, and financial projections.

Limited Liability Corporation

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Sole Proprietorship

A business structure where a single individual owns and operates the entire business, bearing all financial risks and responsibilities.