Answer:
Total assets next year = $194,136
so correct option is A. $194,136
Explanation:
given data
Total liabilities = $72,303
Common Stock = $11,775
Retained Earnings = $88,558
net profit = $36,500
dividends = $15,000
to find out
total assets be next year
solution
we get here Assets for current year that is express as
Assets for current year = Total liabilities + Common stock + Retained earnings ......................1
put here value we get
Assets for current year = $72,303 + $11,775 + $88,558
Assets for current year = $172,636
and
now we get Net addition to assets next year that is
Net addition to assets next year = Net Profit – Dividends ...............2
put here value
Net addition to assets = $36,500 - $15,000
Net addition to assets = $21,500
so as that Total assets next year will be
Total assets next year = Opening assets + Net addition ............3
Total assets next year = $172,636 + $21,500
Total assets next year = $194,136
so correct option is A. $194,136
