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26 December, 01:05

At the beginning of the year, Yates Company had total assets of $550,000 and total liabilities of $200,000. Answer the following questions viewing each situation as being independent of the others. (1) If total assets increased $200,000 during the year, and total liabilities decreased $75,000, what is the amount of stockholders' equity at the end of the year?

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  1. 26 December, 04:40
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    Owner's Equity = $625,000

    Explanation:

    given data

    total assets = $550,000

    total liabilities = $200,000

    total assets increased = $200,000

    total liabilities decreased = $75,000,

    solution

    Total Assets Total Liabilities

    Beginning $550,000 $200,000

    Changing + 200,000 - 75,000

    Ending balance $750,000 $125,000

    so Owner's Equity = Total Assets - Total Liabilities

    Owner's Equity = $750,000 - $125,000

    Owner's Equity = $625,000
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