Answer:
Thus, the JetBlue's equity at the end of the year is $1,654 million
Explanation:
In this case, the accounting equation is used.
Accounting equation means the equation which shows double accounting entry system. Double accounting means debit side and credit side. In this accounting equation, the total assets is equal to total liabilities + total equity.
Total Assets = Total Liabilities + Total Equity
$6549 = Total Liabilities + $1,546
Total Liabilities = $5,003 million
In the question the assets is increased by $44 million whereas liabilities is decreased by $64 million.
So,
Updated asset value = $6,549+$44
= $6,593 million
Updated liabilities value = $5,003 - $64
= $4,939 million
So, the ending equity value will be
= Ending assets - Ending liabilities
= $6,593 million - $4,939 million
= $1,654 million
Thus, the JetBlue's equity at the end of the year is $1,654 million
