You have been provided the following information about High Inc.
$\begin{array}{|l|l|l|}
\hline {\text { in thousands of dollars) }} & {2005} &{2006} \
\hline \text { Current Assets } & \$ 158 & \$ 163 \
\hline \text { Long Term Assets } & \$ 453 & \$ 502 \
\hline \text { Current Liabilities } & \$ 102 & \$ 143 \
\hline \text { Long Term Liabilities } & \$ 302 & \$348 \
\hline \text { Net Income } & \$ 32 & \$ 42 \
\hline
\end{array}$
-Owner's Equity for 2006 is:
A) $20,000
B) $154,000
C) $174,000
D) $207,000

Question

You have been provided the following information about High Inc.
 $\begin{array}{|l|l|l|}
\hline {\text { in thousands of dollars) }} & {2005}  &{2006} \
\hline \text { Current Assets } & \$ 158 & \$ 163 \
\hline \text { Long Term Assets } & \$ 453 & \$ 502 \
\hline \text { Current Liabilities } & \$ 102 & \$ 143 \
\hline \text { Long Term Liabilities } & \$ 302 & \$348 \
\hline \text { Net Income } & \$ 32 & \$ 42 \
\hline
\end{array}$
-Owner's Equity for 2006 is:
A) $20,000
B) $154,000
C) $174,000
D) $207,000

Quizplus · Accepted Answer

To find owner's equity, we can use the accounting equation:

Assets = Liabilities + Owner's Equity

For 2006:

Assets = Current Assets + Long Term Assets = $163 + $502 = $665,000

Liabilities = Current Liabilities + Long Term Liabilities = $143 + $348 = $491,000

Now, we can find owner's equity:

Owner's Equity = Assets - Liabilities = $665,000 - $491,000 = $174,000

Therefore, the answer is C) $174,000.

You Have Been Provided the Following Information About High Inc