Total Assets Increase Calculation - Exciting Financial News!
How much did total assets change by based on the given data?
a. $50,000 decrease
b. $20,000 increase
c. $20,000 decrease
d. $50,000 increase
Answer:
The increase in total assets is $50,000. Therefore, option (d) $50,000 increase is correct.
Equity increased by $15,000 and total liabilities increased by $35,000. To calculate the change in total assets, we need to add the increase in equity to the increase in total liabilities.
Total assets = Equity + Total liabilities
By adding the increase in equity and total liabilities, we get:
Total assets increase = $15,000 + $35,000 = $50,000
Therefore, the total assets increased by $50,000 based on the provided data.