A firm has common stock of $6,200, paid-in surplus of $9,100, total liabilities of $8,400, current assets of $5,900, and fixed assets of $21,200. What is the amount of the shareholders' equity?
A) $6,900
B) $15,300
C) $18,700
D) $23,700
E) $35,500

Question

Quizplus · Accepted Answer

To calculate the shareholders' equity, we need to subtract total liabilities from total assets. 
Total assets = current assets + fixed assets 
= $5,900 + $21,200 
= $27,100 
Shareholders' equity = total assets - total liabilities 
= $27,100 - $8,400 
= $18,700. 
Therefore, the correct answer is (C) $18,700.

A Firm Has Common Stock of $6,200, Paid-In Surplus of $9,100