ABC Construction, Inc. has buildings and equipment of $315,600, long-term debt of $154,700, accounts payable of $52,000, cash of $9,800, accounts receivable of $18,300, inventory of $62,000, and retained earnings of $147,000. What is the total equity of the firm?

Question

Quizplus · Accepted Answer

Total assets = Buildings and equipment + Cash + Accounts receivable + Inventory = $315,600 + $9,800 + $18,300 + $62,000 = $405,700
Total liabilities = Long-term debt + Accounts payable = $154,700 + $52,000 = $206,700
Total equity = Total assets - Total liabilities = $405,700 - $206,700 = $199,000. Therefore, the correct answer is D.