Question
Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 20Y2, Inspirational has assets of $763,100 and liabilities of
Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 20Y2, Inspirational has assets of $763,100 and liabilities of $241,140. Using the accounting equation and considering each case independently, determine the following amounts:
a. Stockholders' equity as of October 31, 20Y2. $ 521,960
b. Stockholders' equity as of October 31, 20Y3, assuming that assets increased by $120,570 and liabilities increased by $72,490 during 20Y3. $
c. Stockholders' equity as of October 31, 20Y3, assuming that assets decreased by $60,280 and liabilities increased by $21,370 during 20Y3. $
d. Stockholders' equity as of October 31, 20Y3, assuming that assets increased by $100,730 and liabilities decreased by $38,160 during 20Y3. $
e. Net income (or net loss) during 20Y3, assuming that as of October 31, 20Y3, assets were $961,510, liabilities were $156,440, and no additional common stock was issued or dividends paid. $
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