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Last year the Chester company increased their equity. In 2017 their equity was $

ID: 2614212 • Letter: L

Question

Last year the Chester company increased their equity. In 2017 their equity was $49,131. Last year (2018) it increased to $54,027.

What are causes of change in equity?

Check all that apply.

Select: 3

Change in inventory of-$3,275.

A change of plant and equipment of$9,580.

Dividend payment of$6,489.

A bond issue of$1,377.

Plant Improvements of $9,580 Depreciation of -$41,287

Profits of $12,992 Issue and retirement of stock .

A change in short term debt of-$4,478.

An accounts payable change of$1,654.

A change in cash of $453.

Explanation / Answer

1. Profits of $12,992 Issue and retirement of stock.

2. Dividend payment of $6,489.

Total shareholder's equity can be effected by issuance of stock or redemption of it , dividend payment of shares and change in Retained Earning Balance.