Reference no: EM132982355

At the beginning of the year, Xul Ltd. had the following amounts on its statement of financial position. Use this information to answer each of the following independent questions.

Beginning of year, total assets: 720,000
Beginning of year, total liabilities: 420,000

Problem (A) During the year, Xul's total liabilities decreased by $100,000. The company reported net income of $90,000, sold additional shares for $125,000, and did not declare any dividends during the year. What is the amount of total assets at the end of the year?

Problem (B) If Xul's total assets decreased by $90,000 during the year and shareholders' equity increased by $120,000, what is the amount of total liabilities at the end of the year?