Question

Brief Exercise 1-9 Your answer is partially correct. Try again. At the beginning of the year, Skysong, Inc. had total assets of $845,000 and total liabilities of $532,000. (Treat each item independently.) (a) If total assets increased $150,000 during the year and total liabilities decreased $75,000, what is the amount of stockholders' equity at the end of the year? Stockholders' equity 538000 (b) During the year, total liabilities increased $96,000 and stockholders' equity decreased $80,000. 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 $120,000 during the year, what is the amount of total liabilities at the end of the year? Total liabilities Click if you would like to Show Work for this question: Open Show Work

Answer 1

		Assets	=	Liabilities	+	Equity
	Given	845,000	=	532,000	+	313,000
a)		150,000	=	-75,000	+	0
		995,000		457,000		538,000
		Stockholders Equity		538,000
b)		Assets	=	Liabilities	+	Equity
	Given	845,000	=	532,000	+	313,000
		0	=	96,000	+	-80,000
		861,000	=	628,000		233,000
		total assets=		861,000
c)
		Assets	=	Liabilities	+	Equity
	Given	845,000	=	532,000	+	313,000
		-82,000	=	0	+	120,000
		763,000	=	330,000		433,000
		total liabilities=		330,000