Which Financial Changes Occurred at Peabody Toys, Incorporated?
- a) Peabody Toys experienced a decrease in net income from 2023 to 2024.
- b) Total Liabilities increased by $200,000 from 2023 to 2024.
- c) Total Assets decreased by $300,000 from 2023 to 2024.
- d) Net Income remained unchanged between 2023 and 2024.
Financial Changes at Peabody Toys, Incorporated
Explanation: To determine which statement is true based on the information provided, we need to compare the values of net income, total liabilities, and total assets between 2024 and 2023.
Net Income
Net Income for 2024: $500,000; Net Income for 2023: $450,000. Since the net income increased from $450,000 in 2023 to $500,000 in 2024, statement a) is false, as there was an increase in net income, not a decrease.
Total Liabilities
Total Liabilities for 2024: $1,200,000; Total Liabilities for 2023: $1,000,000. Since the total liabilities increased from $1,000,000 in 2023 to $1,200,000 in 2024, statement b) is true, as there was an increase of $200,000 in total liabilities.
Total Assets
Total Assets for 2024: $2,500,000; Total Assets for 2023: $2,200,000. Since the total assets increased from $2,200,000 in 2023 to $2,500,000 in 2024, statement c) is true, as there was an increase of $300,000 in total assets.
Conclusion
Based on the comparisons, the correct statements are b) Total Liabilities increased by $200,000 from 2023 to 2024, and c) Total Assets decreased by $300,000 from 2023 to 2024.