[Jaylee777]

:eek: I need to find out what the net worth is on the beginning year
This is the problem below
Beginning of the year:
Assets:
Liabilities: $120.000
End of year:
Assets: $248.000
Liabilities: $136.000

Additional Investments: 40.000

Withdrawls: 60.000

Revenues: 112.000
Expenses: 128.000

I need to find out what the missing number is for assets for the beginning of the year
Thanks[/B]

[CaptainForest]

End of Year Equity must be 248,000 – 136,000 = 112,000

What is the Opening Equity? Who know, but we can calculate it.

Net Income for the year is 112,000 – 128,000 = -16,000 (so a net loss)

Also there were investments of 40,000

Also there were drawings of 60,000

Therefore….

Beginning Equity
- Net Loss
+ Investments
- Drawings
= Ending Inventory

Beginning Equity - Net Loss + Investments – Drawings = Ending Inventory
Beginning Equity – 16,000 + 40,000 – 60,000 = 112,000
Beginning Equity = 148,000

The question is what are beginning assets?

Well, Assets = Liabilities + Equity
So since equity is 148,000 and liabilities were 120,000, assets must have been 268,000