O3 Radisson Companys Eabilities equal onethird of the total

. O3. Radisson Company\'s Eabilities equal one-third of the total assets, and stockholders\' equity is $160,000. What is the amount of iks liabilities? 4. At the beginning of the year, Sun Company\'s assets were $275,000, and its stockholders\' equity was $150,000. During the year, assets increased $75,000 and liablities decreased $22,500, What is the stockholders\" equity at the end of the year?

Solution

1.Total assets=Total liabilities+Total equity

Hence stockholders equity =(1-1/3)=2/3 of total assets

160,000=2/3total assets

Hence total assets=(160,000*3/2)=$240,000

Hence liabilities=(240,000*1/3)=$80,000

2.Total liabilities at beginning=(275000-150,000)=$125000

Hence total assets at end=(275000+75000)=$350,000

Total liabilities=(125000-22500)=$102500

Hence total stockholders equity=(350,000-102500)=$247500.