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23 July, 16:54

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.

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  1. 23 July, 18:51
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    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
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