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At the beginning of the year, Shaolin Company had total assets of $520,000 and total liabilities of $210,000

Business Mar 31, 2021

At the beginning of the year, Shaolin Company had total assets of $520,000 and total liabilities of $210,000.

Answer the following questions viewing each situation as being independent of the others.

(a1) If total assets increased $200,000 during the year, and total liabilities decreased $75,000, what is the amount of stockholders' equity at the end of the year? Stockholders' equity

(a2) During the year, total liabilities increased $230,000 and stockholders' equity decreased $90,000. What is the amount of total assets at the end of the year? Total assets 

(a3) If total assets decreased $40,000 and stockholders' equity increased $130,000 during the year, what is the amount of total liabilities at the end of the year? Total liabilities 

Expert Solution

Answer:

Stockholders' Equity at the beginning 310000 =520000-210000
     
(a1)    
Stockholders' Equity 585000 =310000+200000+75000
     
(a2)    
Total assets 660000 =520000+230000-90000
     
(a3)    
Total liabilities 40000 =210000-40000-130000
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