Question

At the beginning of the year, Execon Company had total assets of $200,000, total liabilities of $110,000, and shareholders' equity of $90,000. For the year, Execon Company earned net income of $75,000 and declared cash dividends of $30,000. At the end of the year, the company had total assets of $300,000 and its shareholders' equity was at $135,000. At the end of the year, Execon Corporation had total liabilities of:

Answer 1

Answer:

$165,000

Explanation:

In every balance sheet, the accounting equation has used that means

Total assets = Total liabilities + Shareholder equity

In this question also, this same accounting equation is used

where,

Total asset is $300,000

And, the shareholder equity is $135,000

Now put these values to the above equation

So, the value would equal to

= $300,000 - $135,000

= $165,000