Sawaddee Enterprises Began the Year with Total Assets of $450,000

question 196

Multiple Choice

Sawaddee Enterprises began the year with total assets of $450,000 and total liabilities of $230,000.If Sawaddee's total assets doubled to $1,000,000 and its owners' equity remained the same during the year, what was the amount of its total liabilities at the end of the year?

• A) $220,000
• B) $680,000
• C) $780,000
• D) $900,000

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Definitions:

Days' Sales In Inventory

A financial metric that measures the average number of days a company takes to sell its inventory.

Ending Inventory

The value of unsold goods at the end of an accounting period.

Inventory Management

The supervision and control of ordering, storing, and using a company's inventory, both raw materials and finished products.

Days' Sales In Inventory

A financial metric that measures the average number of days it takes for a company to turn its inventory into sales.