Question
Captivating Inc. is a motivational consulting business. At the end of its accounting period, May 31, 20Y2, Captivating Inc. has assets of $712,650 and liabilities
Captivating Inc. is a motivational consulting business. At the end of its accounting period, May 31, 20Y2, Captivating Inc. has assets of $712,650 and liabilities of $225,200. Using the accounting equation and considering each case independently, determine the following amounts:
a. Stockholders' equity as of May 31, 20Y2.
b. Stockholders' equity as of May 31, 20Y3, assuming that assets increased by $112,600 and liabilities increased by $67,700 during 20Y3.
c. Stockholders' equity as of May 31, 20Y3, assuming that assets decreased by $56,300 and liabilities increased by $19,950 during 20Y3.
d. Stockholders' equity as of May 31, 20Y3, assuming that assets increased by $94,070 and liabilities decreased by $35,630 during 20Y3.
e. Net income (or net loss) during 20Y3, assuming that as of May 31, 20Y3, assets were $897,940, liabilities were $146,090, and no additional common stock was issued or dividends paid.
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