On September 30, the Simpson Company reported the following information on its financial statements. $$\begin{array} { l l }
\hline \text { Total current } & \$ 650,000 \
\text { assets } & \
\text { Total long- } & \$ 1,080,000 \
\text { term assets } & \
\text { Total current } &\$684,000\
\text { liabilities }\
\text { Total long- }& \$ 803,000 \
\text { term debt }\
\hline
\end{array}$$ What is the amount of the shareholders' equity in the Simpson Company?

Question

On September 30, the Simpson Company reported the following information on its financial statements. $$\begin{array} { l l } 
\hline \text { Total current } & \$ 650,000 \
\text { assets } & \
\text { Total long- } & \$ 1,080,000 \
\text { term assets } & \
\text { Total current } &\$684,000\
\text { liabilities }\
\text { Total long- }& \$ 803,000  \
\text { term debt }\
\hline
\end{array}$$ What is the amount of the shareholders' equity in the Simpson Company?

Quizplus · Accepted Answer

Shareholders' equity is calculated as total assets minus total liabilities. Total assets = $650,000 + $1,080,000 = $1,730,000. Total liabilities = $684,000 + $803,000 = $1,487,000. Shareholders' equity = $1,730,000 - $1,487,000 = $243,000.

On September 30, the Simpson Company Reported the Following Information