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Grey wolf has current assets of 2230 net fixed assets of 9900 current liabilities of 1380 and long term debt of 40. What is the value of the shareholder equity account for this firm?

Sagot :

The value of shareholders' equity is $5,690.

Total assets = Current assets + Net fixed assets

Total assets = $2,090 + $9,830

Total assets = $11,920

The value of shareholders' equity is $5,690.

Total liabilities = Current liabilities + Long-term debt

Total liabilities = $1,710 + $4,520

Total liabilities = $6,230

Value of shareholders' equity = Total assets - Total liabilities

Value of shareholders' equity = $11,920 - $6,230

Value of shareholders' equity = $5,690.

Equity held by shareholders refers to the sum that a company's founders have contributed to the enterprise. This covers the funds they have directly invested as well as the total amount of profits the business has generated and reinvested since its establishment. The equity of the shareholders is calculated using this formula as the difference between total assets and total liabilities.

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