Question

A company reported total equity of $167,000 at the beginning of the year. The company reported $232,000 in revenues and $176,000 in expenses for the year. Liabilities at the end of the year totaled $103,000. What are the total assets of the company at the end of the year?

Answer 1

$326,000

Step-by-step explanation:

As we know that

Total assets = Total liabilities + stockholder equity

where,

Total liabilities = $103,000

And, the stockholder equity would be

= Beginning balance of total equity + revenues reported - expenses incurred

= $167,000 + $232,000 - $176,000

= $223,000

So, the total assets would be

= $103,000 + $223,000

= $326,000