A firm has common stock of $5,500, paid-in surplus of $8,200, total liabilities of $6,600, current assets of $7,200, and fixed assets of $16,900. What is the amount of the shareholders' equity?

Question

Quizplus · Accepted Answer

Shareholders' equity is calculated as total assets minus total liabilities. Total assets are the sum of current assets ($7,200) and fixed assets ($16,900), which equals $24,100. Subtracting total liabilities ($6,600) from total assets ($24,100) gives $17,500.

A Firm Has Common Stock of $5,500, Paid-In Surplus of $8,200