Natalia Louis opened a pet shop called Natalia’s Pet Shop. Answer the following questions based on two different situations related to the pet shop.

Requirements
1. Natalia’s Pet Shop began the year with total liabilities of $40,000 and total stockholders’ equity of $22,500. During the year, total assets increased by 25%. Compute the total assets at the end of the year.
2. Natalia’s Pet Shop began the year with total assets of $37,500 and total liabilities of $25,000. Net income for the year was $12,000. Dividends were $3,000. Compute the stockholders’ equity at the end of the year.