View Full Version : Total Stockholders Equity
GradNerd
Jun 30, 2009, 12:22 PM
I am having trouble with total stockholers equity. I am given a problem with total assets, total liabilities and retained earnings given to me. I am not sure how to go about finishing it. Everything I can find mentions different types of stock that should be calculated. Anyone have any advice?
codyman144
Jun 30, 2009, 12:49 PM
Remember that Assets = Liabilities-Owners Equity
Also retained earnings is a type of equity.
If you want to post the question and your answer I will let you know if you are on the right track.
GradNerd
Jun 30, 2009, 01:17 PM
Well, I am given:
Total assets $40k
Total Liabilities $15K
Total retained earnings $13K
The question is find the toal stock holder's equity.
I am thinking retained earnings is there to throw me off. Maybe assets-liabilities? Which would give me an answer of $25K?
codyman144
Jun 30, 2009, 01:29 PM
Yes you are thinking about that correctly. Assets - Liab = Equity
Remember RE is just a part of equity..