Answer:
Equity decrease by 6,000
possible explanation:
(A) Purchase of Treasury Stock will cause to:
decrease cash (assets) and decrease equity
if the company paid 1,000 liab and purchase 6,000 Treasury Stock
This will generate the end 2018 values
(B) long term assets totaled (destruction):
Long term equipment was totaled and therefore the loss decrease the equity
(C) net loss
A net loss will decrease the assets and equity
(D) cash dividends
the company had most of his equity on retained earnings account, so it paid out cash dividends.
Also, it could happen a combitation of hese factor.
The company purchase TS for 2,000
It distribute 1,000 cash dividends
it paid 1,000 liab
A long term asset was totaled for 2,000
This generate a net loss for 1,000
Explanation:
<u>2017:</u>
total assets 17,000
total liabilities <u> (7,000) </u>
equiy 10,000
<u>2018:</u>
total assets 10,000
total liabilities <u> (6,000) </u>
equiy 4,000
difference; 4,000 - 10,000 = 6,000
