What effect did transactions have on stockholders equity

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Problem - Martha's House of Mirrors, Inc. had sales of $1,067,200 for 2005, of which $860,000 was on account and the rest in cash. The company incurred total expenses of $938,800 during the year, of which $440,000 was on account and the rest in cash. The company purchased $189,600 of supplies on account, collected $314,000 of accounts receivable, paid $110,400 of accounts payable, and declared and paid a $168,800 dividend. What effect did these transactions have on the company's total stockholders' equity?

a. Increase $458,000

b. Increase $128,400

c. Decrease $150,800

d. Decrease $40,400

e. None of the above.

Reference no: EM132681559

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