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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..