Determine the equity at the end of the year
At the beginning of the year, Logan Comapny's assets are $200,000 and its equity is $150,000. During the year, assets increase $70,000 and liabilities increase $30,000. What is the equity at the end of the year?
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he anticipates that the business will be profitable immediately due to a patent he holds. He predicts that profits for the first year will be about $300,000 and will increase at a rate of about 20%.
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