If total liabilities decreased by 25,000 during a period and owners equity increasesd by 30,000 during the same period what is the amount and direction of the periods change in total assets.

Example – Beginning of Year

Assets = Liabilities + OE

100,000 = 70,000 + 30,000


Example – End of Year
Assets?? = [70,000-25,000] + [30,000+30,000]
Assets?? = 45,000 + 60,000
Assets = 105,000

Therefore Assets increased by 5,000