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Accounting equation Inspirational Inc. is a motivational consulting business. At the end of its accounting period,...

Accounting equation

Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 20Y2, Inspirational has assets of $5,700,000 and liabilities of $3,000,000.

Accounting equation
Inspirational Inc. is a motivational consulting business. The data for the assests and liabilities of Inspirational Inc. at the end of its accounting period, October 31, 20Y2, are provided in the table below. Columns B and D indicate the increase (Inc) or decrease (Dec) in assets and liabilities from October 31, 20Y2. Calculate the corresponding amount for each of the cases below. Consider each case independently.
DATA
Accounting Period Ended October 31, 20Y2
Assets $5,700,000
Liabilities 3,000,000
Using formulas and cell references, perform the required analysis, and input your answers into the Amount column.
Assets Liabilities Amount Formulas
A. Stockholders' equity as of October 31, 20Y2
$850,000 Inc $250,000 Inc B. Stockholders' equity as of October 31, 20Y3
$800,000 Dec $280,000 Inc C. Stockholders' equity as of October 31, 20Y3
$370,000 Inc $90,000 Dec D. Stockholders' equity as of October 31, 20Y3
$8,000,000 $3,000,000 E. Net income (or net loss) during 20Y3

Using the accounting equation and considering each case independently, determine the following amounts. Round your answers to the nearest dollar.

A. Stockholders' equity as of October 31?

B. Stockholders’ equity as of October 31, 20Y3, assuming that assets increased by $850,000 and liabilities increased by $250,000 during 20Y3?

C. Stockholders’ equity as of October 31, 20Y3, assuming that assets decreased by $800,000 and liabilities increased by $280,000 during 20Y3?

D. Stockholders’ equity as of October 31, 20Y3, assuming that assets increased by $370,000 and liabilities decreased by $90,000 during 20Y3?

E. Net income (or net loss) during 20Y3, assuming that as of October 31, 20Y3, assets were $8,000,000, liabilities were $3,000,000, and no additional common stock was issued or dividends paid?

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ekkarill92 answered 2 years ago
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