Middleton clinic had total assets of $500,000 and an equity balance of $350,000 at the end of 2014. one year later, at the end of 2015, the clinic had $575,000 in assets and $380,000 in equity. what was the clinic's dollar growth in assets during 2015, and how was this growth financed

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Business

Tyshawn Mays

13 December, 01:43

Middleton clinic had total assets of $500,000 and an equity balance of $350,000 at the end of 2014. one year later, at the end of 2015, the clinic had $575,000 in assets and $380,000 in equity. what was the clinic's dollar growth in assets during 2015, and how was this growth financed

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Buckley · Answer 1

The total assets grew by 15% (75,000/500,000) and growth was financed in equity by $30,000 and liabilities by $45,000. An increase in equity could mean that the company incurred profit for the period or additional issuance of stocks in the equity. On the other hand, the increase in liability could mean that the company availed another loan from creditors.