Question

at the beginning of the year, addison company's assets are $170,000 and its equity is $127,500. during the year, assets increase $80,000 and liabilities increase $56,000. what is the equity at year-end?

Answer 1

What is Equity?
The sum of money that would remain in a company's shareholders' possession if all of its assets were sold and all of its liabilities were paid in full is known as equity, sometimes known as shareholders' equity or owners' equity for privately held enterprises. The worth of a company bought is calculated based on its sales less any liabilities that were not transferred with the sale of the company. Additionally, shareholder equity may be used to illustrate a company's book value. On rare occasions, equity may be given in return for money. It also represents the equitable ownership of a company's shares. Equity, which can be found on a company's balance sheet, is one of the data points that analysts use the most frequently to assess a company's financial health.

Main Content      Assets         =       Liabilities             +            Equity
Beginning     =  $170,000               $42,500                           $127500
Change         =  $80,000                 $ 56,000                         $24000
Ending          = $250,000               $ 98,000                          $151,500

Ending Equity = $151,500

To learn more about Equity

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