Answer:
Balance Sheet of Sophie's Sofas for the year ended December 31th 20XX
Cash 10,000 Account Payable 17,000
Account Receivable 22,000 Long Term Debt 170,000
Inventory 200,000 Total Liabilities 187,000
Current Assets 232,000 Stockholders Equity 145,000
PPE 100,000
Total Assets 332,000 Total SE + Liab 332,000
Explanation:
We calculate equity using the accounting equation:
Assets = Liabilities + Equity
We add all the assets in one column, and the liab in another. Now, once we got these two, we calculate equity by subtracting:
332,000 - 187,000 = Equity = 145,000
