At the beginning of the current fiscal year, Surrey Corp.'s balance sheet showed assets of $675,000 and Liabilities of $525,000. During the year, liabilities decreased by $35,000. Net Income for the year was $175,000, and net assets at the end of the year were $193,000. There were no changes in paid-in capital during the year.

Calculate the dividends, if any, declared during the year.

Calculate the total assets at the end of the

First you have to calculate Owners Equity at the beginning of the year. So take your beginning year Assets minus beginning year Liabilities equals your beginning year Owners Equity.

Now you need to calculate ending year Assets, Liabilities and Owners Equity. For ending year Liabilities take your beginning year Liabilities minus the $35,000 decrease to get your ending year Liabilities. For ending year Assets take your Net assets at the end of the year plus your ending year Liabilities to get your ending year Assets. To get your ending year Owners Equity take your ending year Assets minus ending year Liabilities.

Now you need to know the formula for changes in Owner Equity, It is: Beginning Owners Equity plus Net Income (Revenues minus Expenses) minus Dividends = Ending Equity. Since you know 3 of the 4 elements you can change the formula to find the missing element. So: Ending Equity minus Beginning Equity minus Net Income equals Dividends.