Question

At the beginning of a recent year, The Walt Disney Company's liabilities equaled $26,197 million. During the year, assets increased by $400 million and year-end assets equaled $50,388 million. Liabilities decreased $100 million during the year. What were beginning and ending amounts for Walt Disney's equity

Answer 1

To calculate the beginning and ending amounts of Walt Disney's equity, we can use the equation Equity = Assets - Liabilities. Given the beginning liabilities as $26,197 million, the beginning equity is $300 million. The ending equity is $800 million.

Step-by-step explanation:

To calculate the beginning and ending amounts of Walt Disney's equity, we can use the equation:

Equity = Assets - Liabilities

Given that we know the beginning liabilities as $26,197 million, we can calculate the beginning equity.

To find the beginning assets, we can use the equation:

Beginning Assets = Beginning Liabilities + Change in Assets + Decrease in Liabilities

Since assets increased by $400 million and liabilities decreased by $100 million during the year, the beginning assets would be:

Beginning Assets = 26,197 + 400 - 100 = 26,497 million

Now we can calculate the beginning equity:

Beginning Equity = Beginning Assets - Beginning Liabilities = 26,497 - 26,197 = 300 million

Similarly, we can use the same equations to find the ending amounts:

Ending Assets = Beginning Assets + Change in Assets = 26,497 + 400 = 26,897 million

Ending Liabilities = Beginning Liabilities - Decrease in Liabilities = 26,197 - 100 = 26,097 million

Finally, we can calculate the ending equity:

Ending Equity = Ending Assets - Ending Liabilities = 26,897 - 26,097 = 800 million

Answer 2

Equity at start is $23791 million and equity at end is $24291.

Step-by-step explanation:

The basic accounting equation is,

Assets = Liabilities + Equity

Equity at start

The beginning amount of equity can be calculated using the basic accounting equation.

The beginning amount of assets = ending assets - Increase in assets during the year

The beginning amount of assets = 50388 - 400 = 49988 million

The beginning amount of equity is,

49988 = 26197 + Equity

49988 - 26197 = Equity

Equity at start of the year = $23791 million

Equity at end

The ending amount of liabilities is Opening amount of liabilities less reduction in liabilities during the year.

The ending amount of liabilities = 26197 - 100 = 26097 million

Using the year end assets and liabilities figures, we calculate the year end equity to be,

50388 = 26097 + Equity at end

Equity at end = 50388 - 26097

Equity at end = $24291