Reference no: EM132660584

Problem 1: Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 20Y2, Inspirational has assets of $605,590 and liabilities of $191,370. 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 $95,680 and liabilities increased by $57,530 during 20Y3.

c. Stockholders' equity as of October 31, 20Y3, assuming that assets decreased by $47,840 and liabilities increased by $16,960 during 20Y3.

d. Stockholders' equity as of October 31, 20Y3, assuming that assets increased by $79,940 and liabilities decreased by $30,280 during 20Y3.

e. Net income (or net loss) during 20Y3, assuming that as of October 31, 20Y3, assets were $763,040, liabilities were $124,150, and no additional common stock was issued or dividends paid.