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I at a loss trying to figure out the total assets and liabilities from what is given. 

                        K-Os Corporation

Beginning of year
Total assets $66,410 Total liabilities 31,080 Total shareholders’ equity 35,330 End of year Total assets $[1]
Total liabilities 65,090
Total shareholders’ equity [9]
Changes during year in shareholders’ equity
Issue of shares 4,130
Dividends 13,640
Total revenues 54,610
Total expenses 40,410

Olivier Bégassat
  • 20,248
Victoria
  • 47

1 Answers1

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Hint: Remember the formula: assets = liabilities + equity

Then note you have been given four items that change equity. So you need to figure out the sign of the change for each of the four items to get equity, and then apply the formula to get assets.

  • If it would be safe to assume that the 4 you are referring to are issue of shares, dividends, total revenues and total expenses, than I would assume that you add issue of shares, dividends and total revenues and minues that from total expenses to get the sum of $31,970"* for equity making total assets $97,060*, would I be on the right track? – Victoria Sep 12 '13 at 00:00
  • Almost, but one of those 3 you cite as inflows is an outflow. Do you see which one? –  Sep 12 '13 at 00:05
  • Would it be dividends? (I'd assume this because they are not calculated into total equity on the financial position statement) – Victoria Sep 12 '13 at 00:14
  • I think we have a winner! –  Sep 12 '13 at 00:28
  • Ahh, thanks so much for the help! It shed a ton of light on how to play around with financial statements. – Victoria Sep 12 '13 at 00:31