Balance Sheet Jack and Jill Corporation's year-end 2009 balance sheet lists current assets of $250,000, fixed assets of $800,000, current liabilities of $195,000, and long-term debt of $300,000. What is Jack and Jill's total stockholders' equity?

Question

Quizplus · Accepted Answer

Total assets can be calculated as the sum of current assets and fixed assets: 
$250,000 + $800,000 = $1,050,000. 
Total liabilities can be calculated as the sum of current liabilities and long-term debt: 
$195,000 + $300,000 = $495,000. 
Total stockholders' equity can then be calculated as the difference between total assets and total liabilities: 
$1,050,000 - $495,000 = $555,000.

Balance Sheet Jack and Jill Corporation's Year-End 2009 Balance Sheet