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3.) The Foster Co. balance sheet on January 1, 2018 had total liabilities of $ 225,000 and total equity of $725,000. On January 20, 2018 the company raised additional capital by selling 100,000 shares of $ 2 par value common stock for $4 a share. The company paid expenses of $ 65,000 in relation to this capital raise. These expenses were correctly charged against additional paid in capital. On February 10, 2018 the company borrowed $ 250,000 on a note payable from a bank. During the balance of 2018 the Company was able to pay down the note by $ 40,000. On July 1, 2018 the company purchased equipment for $ 100,000 which it paid for $50,000 in cash and the balance in a note payable. The note balance at December 31, 2018 was reduced to $ 40,000 During 2018 the company's revenues totaled $ 2,550,000 and operating expenses totaled $ 725,000. The operating expenses DID NOT include depreciation on the newly purchased equipment. Foster depreciates equipment over a 5 year life using straight line depreciation. On December 15, 2018 Foster declared a dividend of $ 1 per share payable on January 5,2019. The dividend was paid on time. On December 31, 2018 the Company purchased 5,000 shares of treasury stock from a retiring partner for $5 per share The company began the year with 150,000 shares outstanding. Liabilities other than the notes payable mentioned above decreased by $20,000 during 2018 Compute total assets as of December 31, 2018: (show your work )-15 points

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