At the Beginning of the Year Shaolin Company Had Total

question 157

Essay

At the beginning of the year Shaolin Company had total assets of $520000 and total liabilities of $210000. Answer the following questions viewing each situation as being independent of the others.
(1) If total assets increased $200000 during the year and total liabilities decreased $75000 what is the amount of owner's equity at the end of the year?
(2) During the year total liabilities increased $230000 and owner's equity decreased $90000. What is the amount of total assets at the end of the year?
(3) If total assets decreased $40000 and owner's equity increased $130000 during the year what is the amount of total liabilities at the end of the year?

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Definitions:

Post Hoc

The fallacy of using the fact that one event preceded another as sufficient evidence for the conclusion that the first caused the second.

Fallacy

An incorrect reasoning technique that spoils the legitimacy of an argument.

Chewing Gum

A soft, cohesive substance designed to be chewed without being swallowed, often used to freshen breath or for enjoyment.

Arm Sore

A physical condition often resulting from excessive use or exertion of the arm muscles, leading to discomfort or pain.