Question

A firm has common stock of $84, paid-in surplus of $200, total liabilities of $380, current assets of $330, and net fixed assets of $540. What is the amount of the shareholders' equity

Answer 1

Answer:

$490

Explanation:

using the basic accounting equation:

assets = liabilities + stockholders' equity

total assets = $330 + $540 = $870

liabilities = $380

total stockholders' equity = $870 - $380 = $490

shareholders' equity:

• Common stock $84
• Additional paid in capital $200
• Retained earnings $206