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Homework answers / question archive / Floyd Company had beginning-of-the-year total assets of $320,000 and total liabilities of $180,000
Floyd Company had beginning-of-the-year total assets of $320,000 and total liabilities of $180,000.
a. If during the year total assets increased by $15,000 and total liabilities increased by $40,000, what is the end-of-year total stockholders' equity?
b. If during the year total assets increased by $60,000 and total liabilities decreased by $5,000, what is the end-of-year total stockholders' equity?
c. If during the year total liabilities increased by $40,000 and total stockholders' equity increased by $35,000, what are the end-of-year total assets?
a). Computation of the end-of-year total stockholders' equity:-
Stockholders' equity = Total assets - Total liabilities
= ($320,000 + $15,000) - ($180,000 + $40,000)
= $335,000 - $220,000
= $115,000
b). Computation of the end-of-year total stockholders' equity:-
Stockholders' equity = Total assets - Total liabilities
= ($320,000 + $60,000) - ($180,000 -$5,000)
= $380,000 - $175,000
= $205,000
c). Computation of the end-of-year total assets:-
Total equity at the beginning = Total assets - Total liabilities
= $320,000 - $180,000
= $140,000
Total assets = Total liabilities + Total equity
= ($180,000 + $40,000) + ($140,000 + $35,000)
= $220,000 + $175,000
= $395,000
