Ask Question
20 August, 03:43

A company has an assets-to-liabilities ratio of 3:2 and total assets worth $6 million. what is its owners' equity

+5
Answers (1)
  1. 20 August, 04:57
    0
    Owner's equity signifies the owner's savings in the business minus the owner's withdrawals from the business and then add the net income (or deduct if it is the net loss) since the business started. For this problem, we will use the formula: assets / (assets - owner’s equity) So plugging in our ratio: = 6 / (6-2) - We got 2 since assets total up to 6 million. And the accounting equation is assets = liabilities + equity. So we know that our liabilities and equity would be equal to that amount. Thus, get the share of the owner’s equity which is (1/3 x 6 = 2) So the answer is 3/2 or 1.5 or when rounded up it is 2 million.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A company has an assets-to-liabilities ratio of 3:2 and total assets worth $6 million. what is its owners' equity ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers