At the beginning of the year, Execon Company had total assets of $200,000, total liabilities of $110,000, and shareholders' equity of $90,000.For the year, Execon Company earned net income of $75,000 and declared cash dividends of $30,000.At the end of the year, the company had total assets of $300,000 and its shareholders' equity was at $135,000.At the end of the year, Execon Corporation had total liabilities of:
A) $0
B) $45,000
C) $50,000
D) $165,000
E) none of the answers are correct

Question

Quizplus · Accepted Answer

At the end of the year, total liabilities can be calculated using the accounting equation: Assets = Liabilities + Shareholders' Equity. With assets of $300,000 and equity of $135,000, liabilities are $300,000 - $135,000 = $165,000.

At the Beginning of the Year, Execon Company Had Total