Selby Hinkle is the sole stockholder and operator of Osaka, a motivational consulting business. At the end of its accounting period, December 31, 2007, Osaka has assets of $800,000 and liabilities of $375,000. Using the accounting equation and considering each case in dependently, determine the following amounts:
a. Stockholders'equity, as of December 31, 2007.
b. Stockholders' equity, asof December 31, 2008, assuming that assets increased by $125,000and liabilities increased by $60,000 during 2008.
c. Stockholders' equity, as of December 31, 2008, assuming that assets decreased by $100,000 and liabilities increased by $40,000 during 2008.
d. Stockholders' equity, as of December 31, 2008, assuming that assets increased by $80,000 and liabilities decreased by $200,000 during 2008.
e. Net income (or net loss) during 2008, assuming that as of December 31, 2008, assets were $910,000, liabilities were $400,000, and there were no dividends and no additional capital stock was issued.