Question

Chester's balance sheet has $105,027,000 in equity. Next year they expect Assets to increase by $4,000,000 and Liabilities to decrease by $2,000,000. If that happens, what will be Chester's book value?

Answer 1

Answer:

107,027,000 is the total book value

Explanation:

So, you would start by adding 105,027,000 to 4,000,000 that gives you 109,027,000. Then you would subtract 109,027,000 and 2,000,000 that gives you 107,027,000

Therefore your answer will be 107,027,000