Answer these questions about twocompanies:

1.	Clay Limited began the year with total liabilities of $182,500 and totalshareholders' equity of $335,000. During theyear, total assets increased by 22%. How much are total assets at the end of theyear?
2.	Southbound Associates began a year with total assets of $720,000 and total liabilities of $238,000. Net income for the year was $120,000 and no dividends were paid. How much isshareholders' equity at the end of theyear?

FILL IN BLANKS/HIGHLIGHTED YELLOW:

Requirement 1. Clay Limited began the year with total liabilities of $182,500 and total shareholders' equity of $335,000. During the year, total assets increased by 22%. How much are total assets at the end of the year? First compute Clay Companies Umited's total assets at the beginning of the year. The total assets at the beginning of the year for Clay Limited Iwere S :l. During the year the total assets increased by 22%. The total assets at the end otthe year are $3. Requirement 2. Southbound Associates began a year with total assets of $190,000 and total liabilities of $233,000. Net income for the year was $120,000 and no dividends were paid. How much is shareholders' equity at the end of the year? Compute Southbound Associates shareholders' equity at the beginning of the year. The shareholders' equity at the beginning of the year is $ At the end of the year, the company has a net income of $120,000 The shareholders' equity at the end of the year is 3RD