Question

At the beginning of the year, Crane Company had total assets of $900,000 and total liabilities of $514,000. (Treat each item independently.) (

a) If total assets increased $173,000 during the year and total liabilities decreased $71,000, what is the amount of stockholders’ equity at the end of the year?

Stockholders’ equity_____

(b) During the year, total liabilities increased $103,000 and stockholders’ equity decreased $61,000. What is the amount of total assets at the end of the year?

total assets ____

(c) If total assets decreased $82,000 and stockholders’ equity increased $105,000 during the year, what is the amount of total liabilities at the end of the year?

total liabilities _____

Answer 1

Total assets = total Liabilities and stockholders' equity Total liabilities and stockholders equity = Total liabilities + Total stockholders equity Total assets = Total liabilities + Total stockholders' equity $900,000 = $514,000+ Total stockholders' Equity Total Stockholders' Equity = $900,000-$514,000 = $386,000 a) Stockholders' equity S 630,000 Working Notes: Reviesd Total assets = $900,000+$173,000 = $1,073,000 Revised Total liabilities = $514,000-$71,000 = $443.000 Total assets = Total liabilities + Total stockholders' equity $1,073,000 = $443,000 + Total stockholders' Equity Total stockholders' Equity = $1,073,000-$443.000 = $630,000 b) Total Assets S 942,000 Working Notes: Revised Total liabilities = $514.000+$103,000 = $617.000 Revised stockholders' Equity = $386,000-S61,000 = $325,000 Total assets = total Liabilities and stockholders' equity Total assets = Total liabilities + Total stockholders' equity Total Assets = $617,000+$325,000 = $942.000

c) Total Liabilities $ 327,000 Working Notes: Reviesd Total assets = $900,000-$82,000 = $818,000 Revised Stockholders' Equity = $386,000+$105,000 = $491.000 Total assets = Total liabilities + Total stockholders' equity $818,000 = Total Liabilities + $491,000 Total Liabilities = $818,000-$491,000 = $327,000