Answer:
The assets at the end of 2018 will be for 222,000
Explanation:
We solve using the accounting equation:
Assets = Liabilities + Equity
2017
Equity 125,000
Assets 145,000
<em>Assets = Liabilities + Equity</em>
145,000 = Liabilities + 125,000
145,000 - 125,000 = Liabilities
Liaiblities = 20,000
2018
Equity 131,000
"Liabilities increase by 71,000"
Liabilities = 2017 + increase = 20,000 + 71,000 = 91,000
<em>Assets = Liabilities + Equity</em>
Assets = 91,000 + 131,000 = 222,000
