Reference no: EM131526400
Question: Chris Lund is the sole stockholder and operator of Saluki, a motivational consulting business. At the end of its accounting period, December 31, 2005, Saluki has assets of $475,000 and liabilities of $200,000. Using the accounting equation and considering each case independently, determine the following amounts:
a. Stockholders' equity, as of December 31, 2005.
b. Stockholders' equity, as of December 31, 2006, assuming that assets increased by $75,000 and liabilities increased by $40,000 during 2006.
c. Stockholders' equity, as of December 31, 2006, assuming that assets decreased by $15,000 and liabilities increased by $27,000 during 2006.
d. Stockholders' equity, as of December 31, 2006, assuming that assets increased by $125,000 and liabilities decreased by $65,000 during 2006.
e. Net income (or net loss) during 2006, assuming that as of December 31, 2006, assets were $425,000, liabilities were $105,000, and there were no dividends and no additional capital stock was issued.
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: Chris Lund is the sole stockholder and operator of Saluki, a motivational consulting business. At the end of its accounting period, December 31, 2005.
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