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Nesterboy [21]
3 years ago
7

When reviewing the balance sheet for Portable Pet Care, Inc., a mobile small animal care business, Ricky noted the following inf

ormation: Company assets totaling $3.5 million, and liabilities totaling $1.3 million. On paper, the net worth (owners' equity) for this business _________.
Business
2 answers:
myrzilka [38]3 years ago
8 0

Answer:

$2.2 million

Explanation:

Given that

Total asset = 3.5 million

Total liabilities = 1.3 million

Recall that,

Networth (owner's or shareholder's equity) = Total asset - Total liabilities

Therefore

Networth = 3.5 million - 1.3 million

= 2.2 million

Thus,

Owner's equity for this business on paper is $2.2 million based on info provided.

miss Akunina [59]3 years ago
7 0

Answer: $2.2 Million

Explanation:

In fundamental accounting equation:

Assets - Liabilities = Owners' equity. On the balance sheet, owner equity is the same as net worth.

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