Question

The total liabilities of Novak Corp. decreased by $97000 during the month of August 2022. Stockholders’ equity increased by $43000 during this period. By what amount and in what direction must total assets have changed during August?

Answer 1

Answer:

-$54,000

Explanation:

Data provided as per the question

Decreased Liabilities = $97,000

Stockholders' Equity = $43,000

The computation of  total assets is given below:-

Total assets = Decreased Liabilities + Stockholders' Equity

= -$97,000 + $43,000

= -$54,000

Therefore, to compute the total assets we simply add decreased liabilities with stakeholders' equity. So, the total assets is decreased.