Felicia's Rent to Own has total assets of $2,800,000, accounts receivable of $900,000, accounts payable of $700,000, inventory valued at $1,500,000, and total liabilities of $2,500,000. Calculate the owners' equity.
A) $300,000
B) $1,300,000
C) $100,000
D) $1,000,000
E) This is no owners' equity.

Question

Quizplus · Accepted Answer

Owners' equity is calculated as Total Assets minus Total Liabilities. Here, $2,800,000 (Total Assets) - $2,500,000 (Total Liabilities) = $300,000.

Felicia's Rent to Own Has Total Assets of $2,800,000, Accounts