Question

Chester's balance sheet has $92,563,000 in equity. Next year they expect Assets to increase by $4,000,000 and Liabilities to decrease by $2,000,000. If that happens, what will be Chester's book value?

Answer 1

The Chester's book value is the $94563000.

What is book value?

As part of numerous financial assessments, the book values of assets are frequently contrasted with market prices. On a company's balance sheet, the difference between its total assets and total liabilities is known as book value.

Chester's balance sheet has $92,563,000 in equity. Assets to increase by $4,000,000. Liabilities to decrease by $2,000,000. Book value is identified  are:

= Equity + Assets – liabilities

= $92,563,000 + $4,000,000—$2,000,000

= 96,563,000—$2,000,000

= 94563000 Book value.

As a result, the Chester's book value is the $94563000.

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