Jessam7ielchaway
contestada

At the beginning of the year, Addison Company's assets are $273,000 and its equity is $204,750. During the year, assets increase $80,000 and liabilities increase $42,000. What is the equity at the end of the year?

Respuesta :

meerkat18
The equity (E) is the difference of the assets (A) and the liabilities (L). It can be expressed mathematically as,
                                    E = A - L
Substituting the known values,
                   E = ($273000 + $80,000) - $42,000 = $311000
Add the equity at the beginning of the year to get the final equity,
                            E = $311000 + $204,750 = $515750

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