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The assets of a company total $714,000; the liabilities, $207,000. what are the net assets?

Sagot :

The Net assets in stockholders equity of the company are $507,000

How to Calculate Net Assets?

  • Net assets are the value of a company's assets minus its liabilities. It is calculated as (Total Fixed Assets + Total Current Assets) – (Total Current Liabilities + Total Long Term Liabilities).

Now,

Assets = Liabilities + Stockholders' Equity

$714,000 = $207,000 + Stockholders' Equity (or Claims of the Owners);

Stockholders' Equity = $507,000

To learn more about Net assets, refer

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