Question

A company reported total equity of $145,000 at the beginning of the year. The company reported $210,000 in revenues and $165,000 in expenses for the year. There were no stockholder investments or dividends during the year. Liabilities at the end of the year totaled $92,000. What are the total assets of the company at the end of the year?1.$45,000.2.$92,000.3.$98,000.4.$210,000.5.$282,000.

Answer 1

5.$282,000.

Step-by-step explanation:

Assets = Liabilities + Owners Equity.

In order to find the assets at the an of the year we need to find the owners equity at the end of the year.

We are given beginning of the year equity which is 145,000. To this we will add retained earnings. The company made a profit of (210,000-165,000)=45,000. And paid no dividends or made any investments so all 45,000 of this profit was retained. So we will add 45,000 to 145,000 in order to find year ending owners equity. 145,000+45,000= 190,000

Year end owners equity = 190,000

Year end liability = 92,000

Year end assets= Year end owners equity + year end liability

Year end assets = 190,000+92,000= 282,000