Question

Baldwin's balance sheet has \$69,503,000 in equity. Next year they expect Assets to increase by \$4,000,000...

Baldwin's balance sheet has \$69,503,000 in equity. Next year they expect Assets to increase by \$4,000,000 and Liabilities to decrease by \$2,000,000. If that happens, what will be Baldwin's book value? Select: 1

\$33,320,000

\$75,502,000

\$71,502,000

\$63,503,00

Increase in Assets = Decrease in Liabilities + Increase in Equity
\$4,000,000 = -\$2,000,000 + Increase in Equity
Increase in Equity = \$6,000,000

Equity, Net Year = Equity, Current Year + Increase in Equity
Equity, Net Year = \$69,503,000 + \$6,000,000
Equity, Net Year = \$75,503,000

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