On January 31, a company's balance sheet showed net assets of $2,600 and liabilities of $700. Stockholders' equity on January 31 was:Multiple Choice$3,300.$700.$2,600.$1,900.Incorrect
Question
On January 31, a company's balance sheet showed net assets of 700. Stockholders' equity on January 31 was:Multiple Choice700.1,900.Incorrect
Solution
The Stockholders' equity can be calculated using the following formula:
Stockholders' Equity = Total Assets - Total Liabilities
Given in the problem, we have:
Total Assets (Net Assets) = 700
Substitute these values into the formula:
Stockholders' Equity = 700 = $1,900
So, the Stockholders' equity on January 31 was $1,900.
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