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Will someone please solve this accounting problem for me I have tried all ways to solve it.?
Please solve it for me, thanks in .advance
The total assets of Peterman Co. are $910,400 and its liabilities are equal to one fourth of its total assets. What is the amount of Peterman Co.’s stockholders’ equity?
1 Answer
- BobLv 78 years agoFavorite Answer
Remember this equation:
A = l + c
A= Assets
l = liabilities
c = capital .... or stockholders' equity
We know that Assets = $910,400
We also know that liabilities = 1/4 of the assets, or: (910,400 ÷ 4) = $227,600
Now, just plug those values into the equation ( A= l + c) and solve for c (stockholders’ equity)
A = l + c
$910,400 = $227,600 + c
$910,400 - $227,600 = c
c = $682,800
Stockholders’ equity = $682,800
