Question

Gracie co. Has current assets of $32,000, long-term assets of $58,000, current liabilities of $14,000, and long-term liabilities of $20,000. Calculate stockholders’ equity.

Answer 1

stockholder equity = $56,000

Step-by-step explanation:

Gracie co. Has current assets of $32,000, long-term assets of $58,000, current liabilities of $14,000, and long-term liabilities of $20,000. Calculate stockholders’ equity.

assets = 32,000 + 58,000 = 90,000

liabilities = 14,000 = 20,000 = 34,000

Assets = liabilities + stockholder equity

or:

stockholder equity = assets - liabilities

stockholder equity = 90,000 - 34,000

stockholder equity = $56,000