Question

Jack and Jill Corporation's year-end 2009 balance sheet lists current assets of $243,000, fixed assets of $793,000, current liabilities of $185,000, and long-term debt of $293,500. What is Jack and Jill's total stockholders' equity? A. $554,000.
B. $486,000.
C. $1,040,000.

Answer 1

Answer:

$557,500

Explanation:

Given that,

Current assets = $243,000

Fixed assets = $793,000

Current liabilities = $185,000

Long-term debt = $293,500

Total assets:

= Current assets + Fixed assets

= $243,000 + $793,000

= $1,036,000

Total liabilities:

= Current liabilities + Long-term debt

= $185,000 + $293,500

= $478,500

Therefore,

Total stockholders' equity:

= Total assets - Total liabilities

= $1,036,000 - $478,500

= $557,500