Question

Casello Mowing & Landscaping year-end 2018 balance sheet lists current assets of $437,200, fixed assets of $552,800, current liabilities of $418,600, and long-term debt of $318,500. Calculate Casello’s total stockholders’ equity.

Answer 1

Answer:

$252,900

Explanation:

Stockholders' equity refers to the net assets of a business. In other words, the value of the assets after deducting all liabilities. It is calculated by subtracting total liabilities from total assets.

For Casello,

Total assets = current assets plus fixed assets .  

 i.e., 437,200+$552,800= $990,000

Total liabilities = current liabilities plus  long-term debt

i.e.,  $318,500 +  $418,600= $737,100

Stockholder equity = $990,000 - $737,100

=$252,900