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anonymous

  • 4 years ago

Is this question that difficult? No one wants to help me. At the beginning of the year, Addison Company's assets are $273,000 and its equity is $204,750. During the year, assets increase $80,000 and liabilities increase $42,000. What is the equity at the end of the year?

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  1. anonymous
    • 4 years ago
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    Hey guys, be nice please.

  2. RagingSquirrel
    • 4 years ago
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    Sheesh.... i was just trying to help

  3. anonymous
    • 4 years ago
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    No you weren't.

  4. anonymous
    • 4 years ago
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    Now, Tania, the equation you want here is Assets-Liabilities =Equity

  5. anonymous
    • 4 years ago
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    So I have to subtract, correct?

  6. anonymous
    • 4 years ago
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    yes. so first you want to find L1, the liabilities from the first year

  7. anonymous
    • 4 years ago
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    ?

  8. barrycarter
    • 4 years ago
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    The company starts out with $204,750 equity, and then gains $80,000, but also loses $42,000. That's a net gain of $38,000, so the final equity is: 204,750 + 38,000 = $242,750 The original assets are not needed to solve.

  9. anonymous
    • 4 years ago
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    How did you get $38,000?

  10. barrycarter
    • 4 years ago
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    That's +80,000 (assets) minus 42,000 (liabilities).

  11. anonymous
    • 4 years ago
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    Oh ok, I thini I got it, thanks.

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