Calculate equity. Cash at bank $3,500; inventory $1,600; accounts receivable $3,500; accounts payable $1,700; loan from ABC bank $3,500.

Question

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Equity is calculated as total assets minus total liabilities. Total assets = Cash at bank + Inventory + Accounts receivable = $3,500 + $1,600 + $3,500 = $8,600. Total liabilities = Accounts payable + Loan from ABC bank = $1,700 + $3,500 = $5,200. Equity = Total assets - Total liabilities = $8,600 - $5,200 = $3,400.

Calculate Equity