Is this question that difficult? No one wants to help me.

At the beginning of the year, Addison Company's assets are $273,000 and its equity is $204,750. During the year, assets increase $80,000 and liabilities increase $42,000. What is the equity at the end of the year?

Question

Is this question that difficult? No one wants to help me.



At the beginning of the year, Addison Company's assets are $273,000 and its equity is $204,750. During the year, assets increase $80,000 and liabilities increase $42,000. What is the equity at the end of the year?

anonymous · Answer

Hey guys, be nice please.

ragingsquirrel · Answer

Sheesh.... i was just trying to help

anonymous · Answer

No you weren't.

anonymous · Answer

Now, Tania, the equation you want here is Assets-Liabilities =Equity

anonymous · Answer

So I have to subtract, correct?

anonymous · Answer

yes. so first you want to find L1, the liabilities from the first year

anonymous · Answer

?

barrycarter · Answer

The company starts out with $204,750 equity, and then gains $80,000, but also loses $42,000. That's a net gain of $38,000, so the final equity is:

204,750 + 38,000 = $242,750

The original assets are not needed to solve.

anonymous · Answer

How did you get $38,000?

barrycarter · Answer

That's +80,000 (assets) minus 42,000 (liabilities).

anonymous · Answer

Oh ok, I thini I got it, thanks.