At the beginning of the year, Morgan Company had total assets of $440,000 and total liabilities of $285,000.
Required:
Use the fundamental accounting equation to answer the following independent questions:
a. What is total stockholders’ equity at the beginning of the year?
b. If, during the year, total assets increased by $85,000 and total liabilities increased by $38,000, what is the amount of total stockholders’ equity at the end of the year?
c. If, during the year, total assets decreased by $65,000 and total stockholders’ equity increased by $45,000, what is the amount of total liabilities at the end of the year?
d. If, during the year, total liabilities increased by $95,000 and total stockholders’ equity decreased by $75,000, what is the amount of total assets at the end of the year?