Question

The total assets and total liabilities (in millions) of ABC Corporation and XYZ Corporation follow:

Answer 1

Answer:

ABC Corporation stockholders' equity = $21,896  (in millions)

XYZ Corporation stockholders' equity = $19,722  (in millions)

Explanation:

The accounting equation shows the relationship between the elements of a balance sheet namely; the assets, liabilities and stockholders' equity . This is given as

Assets = Liabilities + stockholders' equity

Hence for ABC Corporation, given in millions;

Assets = $39,100

Liabilities = $17,204

ABC Corporation stockholders' equity = $39,100 - $17,204

= $21,896

For XYZ Corporation, given in millions;

Assets = $37,927

Liabilities = $18,205

XYZ Corporation stockholders' equity = $37,927 - $18,205

= $19,722

Answer 2

Answer:

For ABC CORPORATION, stockholders' equity is $21,896,000,000

For XYZ CORPORATION, stockholders' equity is $19,722,000,000

Explanation:

Stockholders' Equity is the owner's residual interest in the business.

The formula for equity equals Asset minus liability

For ABC CORPORATION =

Asset = $39,100,000,000

Liability = $17,204,000,000

Stockholders' Equity = Asset - Liability

= $39,100,000,000 - $17,204,000,000 = $21,896,000,000

For XYZ CORPORATION =

Asset = $37,927000,000

Liability = $18,205000,000

Stockholders' Equity = Asset - Liability

= $37,927,000,000 - $18,205000,000 = $19,722,000,000