A company's balance sheet shows: cash $28,000, accounts receivable $19,000, office equipment $53,000, and accounts payable $20,000. What is the amount of stockholders' equity?

Question

Business

Hillary

11 August, 10:33

A company's balance sheet shows: cash $28,000, accounts receivable $19,000, office equipment $53,000, and accounts payable $20,000. What is the amount of stockholders' equity?

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Answers (1)

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Kylan Lane · Answer 1

The answer is $80,000

Explanation:

Shareholders' equity is the residual interest the owner has in the business. It is calculated by deducting its liabilities from its assets. i. e

Total assets - Total liabilities.

Total assets is summation of current and non-current asset. So we add Curren asset (cash, accounts receivable) and non-current asset (office equipment) together.

So we have, $28,000 + $19,000 $53,000 = $100,000

Therefore, stockholders' equity is:

$100,000 - $20,000

=$80,000