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At the beginning of the year, Crane Company had total assets of $806,000 and total liabilities of $595,000. (Treat each item independently)

a. What is the equity of Crane Company?
b. What is the net income of Crane Company?
c. What is the revenue of Crane Company?
d. What is the total income of Crane Company?

1 Answer

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Final answer:

Crane Company's equity was $211,000 at the beginning of the year. However, it's not possible to determine its net income, revenue, or total income with the information provided, as these figures require additional financial details not given in the question.

Step-by-step explanation:

The equity of Crane Company can be calculated by subtracting total liabilities from total assets. Equity is the owner's claim on the assets of a business and is equal to assets minus liabilities. In this scenario, the equity can be calculated as:



Total Assets - Total Liabilities = Equity



$806,000 - $595,000 = $211,000



This means Crane Company's equity at the beginning of the year was $211,000.



However, without additional information, it is impossible to determine the net income, revenue, or total income of Crane Company from the assets and liabilities alone. Net income is calculated by subtracting all expenses from the revenues for a given period, while revenue is the total amount earned from sales before expenses. Total income would typically refer to net income or could include other sources of income not solely from operations.

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