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