Answer these questions about 2 companies.
1. Peru, Inc., began the year with total liabilities of $140,000 and total stockholders' equity of $300,000. During the year, total assets increased by 20%. How much are total assets at the end of the year?
2. Social Networking Associates began the year with total assets of $500,000 and total liabilities of $200,000. Net income for the year was $100,000, and dividends were zero. How much is stockholders' equity at the end of the year?