Consider the following information:
a. Jenkins Company starts the year with $50,000 in assets and $40,000 in liabilities. Net income for the year is $12,500, and no dividends are paid. How much is Jenkins' equity at the end of the year?
b. McCay Inc. doubles the amount of its assets from the beginning to the end of the year. At the end of the year, liabilities are $50,000, and equity is $30,000. What is the amount of McCay's assets at the beginning of the year?
c. During the year the liabilities of Hudson Corp. triple. At the beginning of the year, assets were $40,000, and equity was $20,000. What is the amount of liabilities at the end of the year?
Required
Use the accounting equation to answer each of the independent questions above.