At the beginning of 2014, kj corporation had total assets of $553,700
The amount of liabilities that KJ must have at the end of 2014 in order for the statement of financial position to balance can be calculated by taking into account its total assets, net income and dividends; in this case the figure works out to be $274,200. This means that the company has incurred a total liability of $274,200 during that year.
To arrive at this number; one must first add together all associated numbers i.e. KJ’s total assets ($721,800), net income ($225,200) & dividends ($74,400) which gives us a value of $1,021,400. Thereafter we subtract this amount from its alleged liabilities to find out how much more debt needs to be added so as to bring the equation back into balance i.e. 1,021,400 – 721,800 = 274