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Gooran Inc. has current assets of $160 million; property plan and equipment of $330 million and other assets totaling $110 million. Current liabilities are $150 million and long-term liabilities total $360 million

1 Answer

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Final answer:

This business-related college-level question requires an understanding of balance sheets and how to calculate a company's total assets, liabilities, and shareholder's equity. A bank's T-account scenario is also provided as an example to help illustrate similar financial concepts.

Step-by-step explanation:

The question pertains to analyzing and understanding financial information represented in the form of a company's balance sheet. A balance sheet provides detailed information about a company's assets, liabilities, and equity at a specific point in time, which are categorized under current and non-current divisions. In the provided scenario, students need to calculate Gooran Inc.'s total assets, liabilities, and shareholders' equity using the following information:
Assets - current assets ($160 million), property, plant, and equipment ($330 million), and other assets ($110 million); Liabilities - current liabilities ($150 million) and long-term liabilities ($360 million).

Similarly, to understand a bank's balance sheet, we can look at another example where a bank has certain assets and liabilities. Its assets include reserves ($50), bonds ($70), and loans ($500); while the liabilities consist of deposits ($400) and the bank's equity needs to be calculated. The net worth, in this case, is essentially the difference between total assets and total liabilities.

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User Ehc
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