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