'Actual Tigers Company'
Total Assets
$100,000
Stockholder Equity: $30,000
$100,000 - $30,000 = $70,000
$70,000 + $30,000 = $100,000
Total Assets - Equity = $70,000 (total liabilities)
$70,000 + Equity = $100,000 (total assets)
In accounting if we minus the total assets ($100,000) with equity ($30,000) it will always give the "total liabilities" which is (70,000)
Then, adding the "total liabilities" ($70,000) with the equity ($30,000) equals $100,000 equal like as the "total assets"of $100,000
The total assets MUST match the total liabilities. If they don't match then either the calculation of the total assets are inaccurate or the numbers are estimated wrong to recalculate.
