Mega Concepts is a motivational consulting business. At the end of its accounting period, December 31, 2013, Mega Concepts has assets of $1,250,000 and liabilities of $475,000.
Using the accounting equation and considering each case independently, determine the following amounts:
a. Stockholders' equity as of December 31, 2013.
b. Stockholders' equity as of December 31, 2014, assuming that assets increased by $225,000 and liabilities increased by $110,000 during 2014.
c. Stockholders' equity as of December 31, 2014, assuming that assets decreased by $300,000 and liabilities increased by $90,000 during 2014.
d. Stockholders' equity as of December 31, 2014, assuming that assets increased by $550,000 and liabilities decreased by $135,000 during 2014.
e. Net income (or net loss) during 2014, assuming that as of December 31, 2014, assets were $1,500,000, liabilities were $375,000, and no additional capital stock was issued or dividends paid.