Reference no: EM132616318

Problem 1: Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 20Y2, Inspirational has assets of $782,540 and liabilities of $247,280. Using the accounting equation and considering each case independently, determine the following amounts:

a. Stockholders' equity as of October 31, 20Y2.

b. Stockholders' equity as of October 31, 20Y3, assuming that assets increased by $123,640 and liabilities increased by $74,340 during 20Y3.

c. Stockholders' equity as of October 31, 20Y3, assuming that assets decreased by $61,820 and liabilities increased by $21,910 during 20Y3.

d. Stockholders' equity as of October 31, 20Y3, assuming that assets increased by $103,300 and liabilities decreased by $39,130 during 20Y3.

e. Net income (or net loss) during 20Y3, assuming that as of October 31, 20Y3, assets were $986,000, liabilities were $160,420, and no additional common stock was issued or dividends paid.