Milsap Corporation reported total assets of $2,500,000, total current liabilities of $900,000, and total long-term liabilities of $800,000. What was the shareholders' equity?

Question

Quizplus · Accepted Answer

Shareholders' equity is calculated as total assets minus total liabilities. Total liabilities are the sum of current and long-term liabilities: $900,000 + $800,000 = $1,700,000. Therefore, shareholders' equity is $2,500,000 - $1,700,000 = $800,000.

Milsap Corporation Reported Total Assets of $2,500,000, Total Current Liabilities