Cardigan Ltd has total assets of $150 000 and liabilities that add up to $70 000 as
Question:
Cardigan Ltd has total assets of $150 000 and liabilities that add up to $70 000 as at 30 June 2021.
1 What is Cardigan’s shareholders’ equity as at 30 June 2021?
2 During the year to 30 June 2022, Cardigan’s total assets increase by $63 000 while total liabilities increase by $25 000. What is the amount of Cardigan’s shareholders’ equity on 30 June 2022?
3 Now assume that in the year to 30 June 2022, Cardigan’s total liabilities increase by $20 000 and its shareholders’ equity decreases by $12 000. On 30 June 2022, what is the level of Cardigan’s total assets?
4 Assume that in the year to 30 June 2022, Cardigan’s total assets double while its shareholders’ equity remains unchanged. What are its total liabilities as at 30 June 2022?
Step by Step Answer:
Fundamentals Of Accounting And Financial Management
ISBN: 9780170454797
8th Edition
Authors: Professor Ken Trotman, Kerry Humphreys