BE1.7 (LO 4) (Use accounting equation.) At the beginning of the year, Xul Ltd. had total assets of $720,000 and total liabilities of $420,000. Use this information to answer each of the following independent questions. a. If Xul's total assets increased by $250,000 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, Xul's total liabilities decreased by $100,000. The company reported net income of $90,000, sold additional shares for $125,000, and did not declare any dividends during the year. What is the amount of total assets at the end of the year? c. If Xul's total assets decreased by $90,000 during the year and shareholders' equity increased by $120,000, what is the amount of total liabilities at the end of the year?
BE1.7 (LO 4) (Use accounting equation.) At the beginning of the year, Xul Ltd. had total assets of $720,000 and total liabilities of $420,000. Use this information to answer each of the following independent questions. a. If Xul's total assets increased by $250,000 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, Xul's total liabilities decreased by $100,000. The company reported net income of $90,000, sold additional shares for $125,000, and did not declare any dividends during the year. What is the amount of total assets at the end of the year? c. If Xul's total assets decreased by $90,000 during the year and shareholders' equity increased by $120,000, what is the amount of total liabilities at the end of the year?
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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![BE1.7 (LO 4) (Use accounting equation.) At the beginning of the year, Xul Ltd. had total assets
of $720,000 and total liabilities of $420,000. Use this information to answer each of the
following independent questions.
a. If Xul's total assets increased by $250,000 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, Xul's total liabilities decreased by $100,000. The company reported net
income of $90,000, sold additional shares for $125,000, and did not declare any
dividends during the year. What is the amount of total assets at the end of the year?
c. If Xul's total assets decreased by $90,000 during the year and shareholders' equity
increased by $120,000, what is the amount of total liabilities at the end of the year?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff2ef0d2a-3c7a-4a6b-8ab5-c3bb13a7b44d%2Fb32acb26-5fc2-4c5d-a5d9-dbfcd06de59f%2Fr4auj0v_processed.jpeg&w=3840&q=75)
Transcribed Image Text:BE1.7 (LO 4) (Use accounting equation.) At the beginning of the year, Xul Ltd. had total assets
of $720,000 and total liabilities of $420,000. Use this information to answer each of the
following independent questions.
a. If Xul's total assets increased by $250,000 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, Xul's total liabilities decreased by $100,000. The company reported net
income of $90,000, sold additional shares for $125,000, and did not declare any
dividends during the year. What is the amount of total assets at the end of the year?
c. If Xul's total assets decreased by $90,000 during the year and shareholders' equity
increased by $120,000, what is the amount of total liabilities at the end of the year?
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