Calculate equity. Cash at bank $3,400; inventory $1,200; accounts receivable $2,500; accounts payable $1,700; loan from ABC Bank $3,500.

Question

Quizplus · Accepted Answer

Equity is calculated as total assets minus total liabilities. Total assets = $3,400 (cash) + $1,200 (inventory) + $2,500 (accounts receivable) = $7,100. Total liabilities = $1,700 (accounts payable) + $3,500 (loan) = $5,200. Equity = $7,100 - $5,200 = $1,900.

Calculate Equity