Question

If liabilities are $53,000 and assets are $173,500, then equity equals: Multiple Choice $120,500 $173,500 $226,500 $53,000

Answer 1

1. Your required answer is option A i.e. $120,500

Explanation:

Equity = Assets – Liabilities

Equity = $120,500

2. Your required answer is option C i.e. $49,000 Increased

Explanation:

3. Your required answer is option E i.e. $300,000

Explanation:

Valuein Asset safterTransaction $300,000

4. Your required answer is option A i.e. 7.9%

Explanation:

$Return on Assets = \frac{Net Income}{Average of Total Assets}$

$Return on Assets = \frac{\$19,150}{\frac{\$213,000 + \$272,000}{2}}$

$Return on Assets = \frac{\$19,150}{\$242,500}$

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