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:

Total Revenue

The gross income a corporation achieves by trading products or delivering services across a certain span of time.

Elastic Demand

A situation in which the demand for a product is sensitive to price changes, meaning a small change in price leads to a larger change in quantity demanded.

Price Elasticity

An indicator that measures the impact on the quantity of a good demanded when there is a change in its price level.

Midpoint Method

A technique used to calculate elasticity by averaging the two points on a demand or supply curve and considering the percentage change from the average.