Question

Ruby enterprises ltd. has long-term bonds worth $20 million, retained earnings of $45 million, accounts payable of $10 million, notes payable of $12 million, and inventory worth $18 million. what is the value of total liabilities of ruby enterprises?​

Answer 1

Liabilities are the company's financial obligation or debt as a result of the operation of the business. In this problem, there are three liabilities which are the long – term bonds, the accounts payable and the notes payable. You can get the value of total liabilities of Ruby Enterprises by adding the three. If you add them all ($20 million + $10 million + $12 million), you can get the total liabilities of Ruby Enterprises which is $42 million.