Murphy Corporation's end-of-year balance sheet consisted of the following amounts: ? $\begin{array} { l r l r } \text { Cash } & \$ 35,000 & \text { Accounts receivable } & \$ 46,000 \\\text { Property, plant \& equip ment } & 69,000 & \text { Long-term debt } & 41,000 \\\text { Capital stock } & 107,000 & \text { Accounts payable } & 22,000 \\\text { Retained earnings } & ? & \text { Inventory } & 33,000\end{array}$ ?
?
What is Murphy's owners' equity balance at the end of the current year?

Question

Murphy Corporation's end-of-year balance sheet consisted of the following amounts: ?

\begin{array} { l r l r } \text { Cash } & \$ 35,000 & \text { Accounts receivable } & \$ 46,000 \\\text { Property, plant \& equip ment } & 69,000 & \text { Long-term debt } & 41,000 \\\text { Capital stock } & 107,000 & \text { Accounts payable } & 22,000 \\\text { Retained earnings } & ? & \text { Inventory } & 33,000\end{array}

?
?
What is Murphy's owners' equity balance at the end of the current year?

Quizplus · Accepted Answer

Owners' equity is calculated as total assets minus total liabilities. Total assets = $35,000 (Cash) + $46,000 (Accounts receivable) + $69,000 (Property, plant & equipment) + $33,000 (Inventory) = $183,000. Total liabilities = $41,000 (Long-term debt) + $22,000 (Accounts payable) = $63,000. Owners' equity = $183,000 - $63,000 = $120,000.

Murphy Corporation's End-Of-Year Balance Sheet Consisted of the Following Amounts