Answer:
The common stock amounts to $23,19,000
Explanation:
The common stock will computed by using the Accounting Equation which is:
Assets = Liabilities + Shareholders earnings
The equation involves:
Total asset = Current Liabilities + Long term debt + Common Stock (CS) + Retained Earnings
Computing the total assets:
Total assets (TA) = Cash + Patents and copyrights + Accounts receivable + Net fixed assets + Inventory
= $250,000 + $720,000 + $159,000 + $4,300,000 + $365,000
= $57,94,000
Computing Current Liabilities (CL) as:
CL = Accounts Payable + Notes Payable
= $430,000 + $170,000
= $600,000
Putting the values in the above formula:
$57,94,000 = $600,00 + $1,630,000 + CS + $1,245,000
$57,94,000 - $600,00 - $1,630,000 - $1,245,000 = CS
CS= $23,19,000
