El Centro Company began the year with owner's equity of $30000. During the year, El Centro received additional owner investments of $42000 recorded expenses of $120000, and had owner drawings of $8000. If El Centro's ending owner's equity was
$112000, what was the company's revenue for the year?

$168,000

Explanation:

Equity = Assets - liabilities.

In the case of El Centro,  the increase in equity will be a result of profits or losses realized in the year.  Since equity increased to $112,000, then revenue for the period will be determined as follows.

$112,000 = (30,000 + 42,000)( equity) + revenue -( 120,000+ 8,000) expenses

$112,000 = $72,000 + revenue - $128,000

$112,000 = -56,000 + revenue

Revenue = 112,000 + 56,000

Revenue =$168,000

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