Question

Suki health foods has 19,000 shares of $5 par common stock outstanding, which were issued at $12 per share. suki also has a deficit balance in retained earnings of $75,000. how much is suki's total stockholders' equity?

Answer 1

We can calculate for the total stockholders’ equity by using the formula:

Total stockholders’ equity = Number of Shares * Price per Share – Deficit Balance

Substituting our given values:

Total stockholders’ equity = 19,000 shares * ($12 / share) - $75,000

Total stockholders’ equity = $153,000