Ask Question
17 June, 20:56

In reviewing the company's balance sheet, Andy noticed that the total asset is stated as $5,500,000 and the total liability is $3,250,000. There is no paid-in capital or value for common stock. What are the company's retained earnings?

+2
Answers (1)
  1. 17 June, 23:19
    0
    The answer is $2,250,000

    Explanation:

    If is no paid-in capital or value for common stock, then company's stakeholders' equity will be the same as retained earnings.

    Stakeholders' equity is the residual interest in a company after its liability has been deducted from asset.

    Therefore, we have:

    Stakeholders' equity = asset - liability.

    Total asset is $5,500,000

    Total liability is $3,250,000.

    Stakeholders' equity will now be:

    $5,500,000 - $3,250,000

    =$2,250,000
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “In reviewing the company's balance sheet, Andy noticed that the total asset is stated as $5,500,000 and the total liability is $3,250,000. ...” 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