Crystal Lodging recorded $330,000 in revenues,$247,500 in expenses,and $45,000 of dividends for the year.The company began the year with total assets of $285,000 and stockholder's equity of $130,500. Suppose that liabilities increased by $90,000 and stockholders' equity increased by $37,500.What would be the change in Crystal Lodging's assets?

Question

Quizplus · Accepted Answer

Assets = Liabilities + Stockholders' Equity
Change in Assets = Change in Liabilities + Change in Stockholders' Equity
= $90,000 in Liabilities + $37,500 = $127,500

Crystal Lodging Recorded $330,000 in Revenues,$247,500 in Expenses,and $45,000 of Dividends