Question

Swifty Corporation has assets of $4345000, common stock of $1076000, and retained earnings of $629000. What are the creditors’ claims on their assets?

Answer 1

Answer:

$2,640,000

Explanation:

Given the above information,

Creditor's claim is computer as

= Assets - Common stock - retained earnings

Given that

Assets = $4,345,000

Common stock = $1,076,000

Retained earnings = $629,000

Creditor's claim on their asset = $4,345,000 - $1,076,000 - $629,000

= $2,640,000