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10 March, 13:45

Midyear on July 31st, the Digby Corporation's balance sheet reported:

Total Assets of $207.448 million

Total Common Stock of $6.350 million

Cash of $10.050 million

Retained Earnings of $44.713 million.

What were the Digby Corporation's total liabilities?

a.$162.735 million.

b.$166.435 million.

c.$156.385 million.

d.$146.335 million.

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  1. 10 March, 17:07
    0
    c. $ 156.385 million is the amount of total liabilities

    Explanation:

    Computation of total liabilities

    Assets = Liabilities + Equity

    Total assets $ 207.448 million

    Less: Total Common stock $ 6,350 million

    Less: Retained earnings $ 44.713 million

    Total equity $ 51, 063 million

    Total liabilities $ 156,385 million

    $ 207,448 million - $ 51,063 million = $ 156,385 million

    The cash account given in the data is not considered as this amount would have already been included in the total assets figure.
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