At the beginning of a recent year, The Walt Disney Company's liabilities equaled $26,197 million. During the year, assets increased by $400 million and year-end assets equaled $50,388 million. Liabilities decreased $100 million during the year. What were beginning and ending amounts for Walt Disney's equity

Equity at start is $23791 million and equity at end is $24291.

Explanation:

The basic accounting equation is,

Assets = Liabilities + Equity

Equity at start

The beginning amount of equity can be calculated using the basic accounting equation.

The beginning amount of assets = ending assets - Increase in assets during the year

The beginning amount of assets = 50388 - 400 = 49988 million

The beginning amount of equity is,

49988 = 26197 + Equity

49988 - 26197 = Equity

Equity at start of the year = $23791 million

Equity at end

The ending amount of liabilities is Opening amount of liabilities less reduction in liabilities during the year.

The ending amount of liabilities = 26197 - 100 = 26097 million

Using the year end assets and liabilities figures, we calculate the year end equity to be,

50388 = 26097 + Equity at end

Equity at end = 50388 - 26097

Equity at end = $24291

explanation:

kool beans

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