At December 31 of the current year, Martin Consultants has a…
At December 31 of the current year, Martin Consultants has assets of $430,000 and liabilities of $205,000. Using the accounting equation and considering each case independently, determine the following: (a) Stockholders’ equity as of December 31. (b) Stockholders’ equity as of December 31 of the next year, assuming that assets increased by $12,000 and liabilities increased by $15,000. (c) Stockholders’ equity as of December 31 of the next year, assuming that assets decreased by $8,000 and liabilities increased by $14,000.