Using the accounting equation Mountain Drycleaners started 2018 with total assets of $19,000 and total liabilities of $14,000. At the end of 2018, Mountain’s total assets stood at $12,000 and total...

Using the accounting equation

Mountain Drycleaners started 2018 with total assets of $19,000 and total liabilities of $14,000. At the end of 2018, Mountain’s total assets stood at $12,000 and total liabilities were $9,000.

Requirements

1. . Did the stockholders’ equity of Mountain Dry cleaners increase or decrease during 2018? By how much?


2. Identify the four possible reasons that stockholders’ equity can change.