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Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31,...

Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 2017, Inspirational has assets of $5,250,000 and liabilities of $1,600,000. Using the accounting equation and considering each case independently, determine the following amounts: a. Stockholders' equity as of October 31, 2017. $ 3,650,000 b. Stockholders’ equity as of October 31, 2018, assuming that assets increased by $800,000 and liabilities increased by $330,000 during 2018. $ 4,120,000 c. Stockholders' equity as of October 31, 2018, assuming that assets decreased by $600,000 and liabilities increased by $140,000 during 2018. $ d. Stockholders' equity as of October 31, 2018, assuming that assets increased by $440,000 and liabilities decreased by $90,000 during 2018. $ e. Net income (or net loss) during 2018, assuming that as of October 31, 2018, assets were $6,140,000, liabilities were $1,950,000, and no additional common stock was issued or dividends paid. Net income $

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Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 2017, Inspirational has assets of $5,250,000 and liabilities of $1,600,000. Using the accounting equation and considering each case independently, determine the following amounts:

a. Stockholders' equity as of October 31, 2017.

5250000=1600000+ stockholders equity = $3650000

b. Stockholders' equity as of December 31, 2018, assuming that assets increased by $800000 and liabilities increased by $330000 during 2018.

800000=330000+stockholders equity

800000-330000=stockholders equity

470000 + 3650000 = $4120000

c. Stockholders' equity as of December 31, 2016, assuming that assets decreased by $600000 and liabilities increased by $140000 during 2018.

-600000 = + 140000 + stockholders equity

= -600000 -140000 = Stockholders equity

= 3650000 – 740000 = $2910000

d. Stockholders' equity as of October 31, 2018, assuming that assets increased by $440,000 and liabilities decreased by $90,000 during 2018.

3650000 + 440000 + 90000 = $895000

e. Net income (or net loss) during 2018, assuming that as of October 31, 2018, assets were $6,140,000, liabilities were $1,950,000, and no additional common stock was issued or dividends paid.

6140000 – 1950000 – 3650000 = $540000

ekkarill92 answered 1 year ago
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