Questions: At the beginning of the year, Blue Spruce Corp. had total assets of 960,000 and total liabilities of 600,000. (Treat each item independently.) (a) If total assets increased 180,000 during the year and total liabilities decreased 96,000, what is the amount of stockholders equity at the end of the year? (b) During the year, total liabilities increased 120,000 and stockholders' equity decreased 84,000. What is the amount of total assets at the end of the year? (c) If total assets decreased 96,000 and stockholders' equity increased 132,000 during the year, what is the amount of total liabilities at the end of the year?

To solve these questions, we will use the basic accounting equation:

\[ \text{Assets} = \text{Liabilities} + \text{Stockholders' Equity} \]

Let's address each part of the question:

(a) If total assets increased $180,000 during the year and total liabilities decreased $96,000, what is the amount of stockholders' equity at the end of the year?

1. Initial Values:

   • Total Assets = $960,000
   • Total Liabilities = $600,000
   • Stockholders' Equity = Total Assets - Total Liabilities = $960,000 - $600,000 = $360,000

2. Changes During the Year:

   • Increase in Total Assets = $180,000
   • Decrease in Total Liabilities = $96,000

3. End of Year Values:

   • New Total Assets = $960,000 + $180,000 = $1,140,000
   • New Total Liabilities = $600,000 - $96,000 = $504,000

4. Calculate Stockholders' Equity at the End of the Year:

   • Stockholders' Equity = Total Assets - Total Liabilities = $1,140,000 - $504,000 = $636,000

Stockholders' equity $636,000

(b) During the year, total liabilities increased $120,000 and stockholders' equity decreased $84,000. What is the amount of total assets at the end of the year?

1. Initial Values:

   • Total Assets = $960,000
   • Total Liabilities = $600,000
   • Stockholders' Equity = $360,000 (as calculated above)

2. Changes During the Year:

   • Increase in Total Liabilities = $120,000
   • Decrease in Stockholders' Equity = $84,000

3. End of Year Values:

   • New Total Liabilities = $600,000 + $120,000 = $720,000
   • New Stockholders' Equity = $360,000 - $84,000 = $276,000

4. Calculate Total Assets at the End of the Year:

   • Total Assets = Total Liabilities + Stockholders' Equity = $720,000 + $276,000 = $996,000

Total assets $996,000

(c) If total assets decreased $96,000 and stockholders' equity increased $132,000 during the year, what is the amount of total liabilities at the end of the year?

1. Initial Values:

   • Total Assets = $960,000
   • Total Liabilities = $600,000
   • Stockholders' Equity = $360,000 (as calculated above)

2. Changes During the Year:

   • Decrease in Total Assets = $96,000
   • Increase in Stockholders' Equity = $132,000

3. End of Year Values:

   • New Total Assets = $960,000 - $96,000 = $864,000
   • New Stockholders' Equity = $360,000 + $132,000 = $492,000

4. Calculate Total Liabilities at the End of the Year:

   • Total Liabilities = Total Assets - Stockholders' Equity = $864,000 - $492,000 = $372,000

Total liabilities $372,000

In summary:

• (a) Stockholders' equity at the end of the year is $636,000.
• (b) Total assets at the end of the year are $996,000.
• (c) Total liabilities at the end of the year are $372,000.