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Question - At the beginning of the year, Shanon Company had total assets of $550,000 and total liabilities of $210,000. Answer the following questions viewing each situation as being independent of the others.
a) If total assets increased by $200,000 during the year, and total liabilities decreased by $75,000, what is the amount of stockholders' equity at the end of the year?
b) During the year, total liabilities increased by $230,000 and stockholders' equity decreased by $90,000. What is the amount of total assets at the end of the year?
c) If total assets decreased by $40,000 and stockholders' equity increased by $130,000 during the year, what is the amount of total liabilities at the end of the year?
Financial Statement Analysis and Preparation
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