At the beginning of the year, Lam Ltd. had total assets of $800,000 and total liabilities of $500,000. Use this
Question:
At the beginning of the year, Lam Ltd. had total assets of $800,000 and total liabilities of $500,000. Use this information to answer each of the following independent questions.
(a) If Lam's total assets increased by $150,000 during the year and total liabilities decreased by $80,000, what is the amount of shareholders' equity at the end of the year?
(b) During the year, Lam's total liabilities decreased by $50,000. The company reported a profit of $50,000, sold additional shares for $75,000, and paid no dividends during the year. What is the amount of total assets at the end of the year?
(c) If Lam's total assets decreased by $80,000 during the year and shareholders' equity increased by $110,000, what is the amount of total liabilities at the end of the year?
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Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine