Jefferson handyman services has total assets for the year of $ 15 comma 400 and total liabilities of $ 8 comma 680. requirements 1. use the accounting equation to solve for equity. 2. if next year assets increased by $ 5 comma 000 and equity decreased by $ 3 comma 850, what would be the amount of total liabilities for jefferson handyman services?

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.