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8 July, 01:14

Use the following information to determine Total Stockholders' Equity:Total Assets $ 45,000 Total Liabilities 18,000 Total Stockholders' Equity x Total Retained Earnings 5,000

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  1. 8 July, 03:37
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    The total stockholder equity value is $27,000

    Explanation:

    By using the accounting equation which is shown below, we can compute the value of total stockholder equity

    Accounting Equation:

    Total Assets = Total Liabilities + Total Equity

    where,

    total assets = $45,000

    total liabilities = $18,000

    So, total equity = $27,000 which includes retained earnings of $5,000

    By using these 3 terms, we get to know the profitability, performance of the company.

    Hence, the total stockholder equity value is $27,000
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