Question

At the beginning of a recent year, JetBlue's assets were $5,598 million and its equity was $1,036 million. During the year, assets increased $486 million and liabilities increased $241 million. What was JetBlue's equity at the end of the year

Answer 1

$1,281 million

Step-by-step explanation:

The computation of the equity at the end of the year is given below:

As we know that

Total assets = Total liabilities + stockholder equity

So for the beginning, the total liabilities is

= $5,598 million - $1,036 million

= $4,562 million

Now the ending stockholder equity is

= ($5,598 millon + $486 million) - ($4,562 million + $241 million)

= $6,084 million - $4,083 million

= $1,281 million