Floyd Company had beginning-of-the-year total assets of $320,000 and total liabilities of $180,000. a. If during the

Question

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?

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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

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Floyd Company had beginning-of-the-year total assets of $320,000 and total liabilities of $180,000

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