At December 31 of the Current Year,Martin Consultants Has Assets

question 28

Essay

At December 31 of the current year,Martin Consultants has assets of $430,000 and liabilities of $205,000.Using the accounting equation and considering each case independently,determine the following:
a Stockholders' equity,as of December 31.
b Stockholders' equity,as of December 31 of the next year,assuming that assets increased by $12,000 and liabilities increased by $15,000.
c Stockholders' equity,as of December 31 of the next year,assuming that assets decreased by $8,000 and liabilities increased by $14,000.

---

Definitions:

Rationalization

The process of making activities or tasks more efficient and systematic, often through the implementation of rules, regulations, and procedures.

McDonaldization

A term used to describe the process by which the principles of the fast-food industry, such as efficiency and uniformity, are coming to dominate other sectors of society.

Work Clock

A device or system used to track and record the hours worked by an employee.

Consumerism

The cultural orientation that encourages the acquisition of goods and services in ever-increasing amounts.