Final answer:
Arnold, Inc. reported an increase in cash of $48,700, calculated by applying the accounting equation with the given changes in shareholders' equity, liabilities, and non-cash assets.
Step-by-step explanation:
The question pertains to the calculation of the change in cash based on the changes reported in a company's comparative balance sheet. To determine this, we apply the basic accounting equation which states that Assets = Liabilities + Shareholders' Equity. Given an increase in overall shareholders' equity by $43,500, a decrease in total liabilities of $17,200, and an increase in assets other than cash of $12,000, we can calculate the change in cash by rearranging the equation to find the missing variable. To find the change in cash:
- Start with the change in shareholders' equity: +$43,500
- Add the decrease in liabilities (which is like an increase in assets for the equation): +$17,200
- Subtract the increase in assets other than cash: -$12,000
The sum reflects the change in cash. So, the calculation is $43,500 (increase in equity) + $17,200 (decrease in liabilities, treated as an increase for this purpose) - $12,000 (increase in non-cash assets) = $48,700. Therefore, Arnold, Inc. reported an increase in cash of $48,700.