XYZ Corporation has published its latest financial statements, which include the income statement, balance sheet, and the statement of changes in equity for the fiscal year ended December 31, 2023. During the year, the company reported net income of $5 million. The statement of changes in equity showed the following details: Beginning retained earnings: $10 million Dividends declared: $2 million Additional paid-in capital from stock issuance: $1 million Based on this information, what is the total ending equity of XYZ Corporation as of December 31, 2023, considering all factors included in the statement of changes in equity?

Exam

CFA Level 1

Section

Difficulty

Financial Reporting and Analysis

Calculate Total Ending Equity

Very Hard Financial Statements Statement Of Changes In Equity

XYZ Corporation has published its latest financial statements, which include the income statement, balance sheet, and the statement of changes in equity for the fiscal year ended December 31, 2023. During the year, the company reported net income of $5 million.

The statement of changes in equity showed the following details:

Beginning retained earnings: $10 million
Dividends declared: $2 million
Additional paid-in capital from stock issuance: $1 million

Based on this information, what is the total ending equity of XYZ Corporation as of December 31, 2023, considering all factors included in the statement of changes in equity?

Total Ending Equity: $14 million

Total Ending Equity: $13 million

Total Ending Equity: $12 million

Hint

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