Answer:
$46,000
Explanation:
The computation of the total liabilities at the end of the first year is shown below:
We know that
Total assets = Total liabilities + stockholder equity
where,
Total assets = Cash + land + short term investment
= $102,000 + $40,000 + $14,000
= $156,000
Stockholder equity = Common stock + net income - dividend paid
= $50,000 + 72,000 - $12,000
= $110,000
So, the total liabilities would be
= $156,000 - $110,000
= $46,000
Working Note:
The net income is
= Revenue - cost of goods sold - Salaries Expense - Utilities Expense - Advertising Expense
= $160,000 - $46,000 - $21,000 - $11,000 - $10,000
= $72,000
