Question

A company reported total equity of $161,000 at the beginning of the year. The company reported $226,000 in revenues and $173,000 in expenses for the year. Liabilities at the end of the year totaled $100,000. What are the total assets of the company at the end of the year

Answer 1

Answer:

$314,000

Explanation:

The computation of total assets is shown below:-

Total equity = $161,000

Revenue = $226,000

Expenses = $173,000

Liabilities at the end of the year = $100,000

Income of the year = $226,000 - $173,000

= $53,000

Total assets of the company at the end of the year = (Total Stock Holders Equity) + Total Liabilities

=(Total equity at the beginning of the year + Income for the year ) + Liabilities at the end of the year

= $161,000 + $53,000 + $100,000

= $314,000