Question

A firm has common stock of $6,200, paid-in surplus of $9,100, total liabilities of $8,400, current assets of $5,900, and fixed assets of $21,200. What is the amount of the shareholders' equity?

Answer 1

Answer:

$18,700

Explanation:

In this question, we applied the accounting equation which is presented below:

Total assets = Total liabilities + shareholder equity

where,

Total assets = Current assets + fixed assets

                    = $5,900 + $21,200

                    = $27,100

And, the Total liabilities is $8,400

So, the  shareholders' equity would be

= $27,100 - $8,400

= $18,700