Eager Beaver, Inc., started 2011 with total assets of \($24,000\) and total liabilities of \($11,000\). At the end of 2011, the business’s total assets stood at \($34,000\), and its total liabilities were $17,000.

Requirements

1. Did the stockholders’ equity of Eager Beaver increase or decrease during 2011? By how much?

2. Identify two possible reasons for the change in stockholders’ equity during the year.