If net income for a company was $50,000, $20,000 in cash dividends were paid and the shareholders invested $10,000 in cash, the stockholders' equity increased by $40,000.True / False.

Respuesta :

Answer: True

Explanation:

The stockholders' equity increased by $ 40,000. Cash investment by Shareholders $ 10,000 plus Net Income $ 50,000 less Cash Dividends $ 20,000