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Alexxx [7]
3 years ago
14

Midyear on July 31st, the Chester Corporation's balance sheet reported: Total Assets of $81.965 million Total Common Stock of $2

.540 million Cash of $4.020 million Retained Earnings of $17.152 million. What were the Chester Corporation's total liabilities?
Business
1 answer:
Vera_Pavlovna [14]3 years ago
5 0

Answer:

  Total Liabilities  = $62.273 million  

Explanation:

<em>The accounting equation state that :</em>

Total assets = capital + liabilities.

<em>This is a fundamental relationship that underpins the preparation of financial statements</em>

<em>Capital for a company is represented by the shareholders funds which is the book value of issued common stock, share premium plus the retained earnings.</em>

So we can apply the equation to the figures of Chester Corporation

81.965  =( $2.540 + 17.152 ) + liabilities

Liabilities =  81.965  - ( $2.540 + 17.1552 )

                = $62.273 million

Total Liabilities  = $62.273 million

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