At the beginning of the year, Yates Company had total assets of $550,000 and total liabilities of $200,000. Answer the following questions viewing each situation as being independent of the others.(1) If total assets increased $200,000 during the year, and total liabilities decreased $75,000, what is the amount of stockholders' equity at the end of the year?

Owner's Equity = $625,000

Explanation:

given data

total assets = $550,000

total liabilities = $200,000

total assets increased =  $200,000

total liabilities decreased =  $75,000,

solution

                             Total Assets           Total Liabilities                

Beginning              $550,000               $200,000

Changing               +200,000               -75,000

Ending balance       $750,000              $125,000            

so  Owner's Equity =  Total Assets - Total Liabilities  

Owner's Equity =  $750,000 - $125,000

Owner's Equity = $625,000

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