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-   -   How to find liability and equity if only given assets and net income? (https://www.askmehelpdesk.com/showthread.php?t=508989)

  • Sep 1, 2013, 11:29 AM
    parparistute21
    How do I find owners equity given :

    Cash
    Short-term invest.
    Net receivables
    Inventory
    Total assets
    Total current liabilities
    Long term note payable
    Income from operations
    Interest expense
  • Sep 1, 2013, 01:03 PM
    pready
    First add your total current liabilities and your long-term liabilities together to get total liabilities.

    Now take your total assets and subtract your total liabilities to get owners equity.

    The rest of the amounts are not needed.
  • Sep 9, 2013, 07:11 PM
    danigee18
    December 31, 2013

    Assets = Liabilities + Equity
    ? = 29,000 + Equity


    Company C
    Assets?
    Liabilities: 29,000

    During year: Stock Issuances 6,000
    Net Income : 8,000
    Cash dividends: 5,875
  • Sep 9, 2013, 07:14 PM
    pready
    Not enough information provided. You need additional information for Company C either in Beginning amounts or Ending amounts.
  • Sep 9, 2013, 07:18 PM
    danigee18
    Company C
    December 31, 2012
    Assets 24,000
    Liabilities 9,000

    December 31, 2013
    Assets ?
    Liabilities 29,000

    During year 2013
    Stock issuances 9750
    Net income 8,000
    Cash dividends 5,875

    Need help finding the amount of assets and equity for December 31, 2013.
  • Sep 10, 2013, 09:00 AM
    pready
    First thing you have to find is equity for 2012. The basic accounting equation is:
    Assets = Liabilities + Equity

    Rewritten as:
    Equity = Assets - Liabilities

    Now you can find Equity for 2013. The formula is:
    Ending Equity (2013) = Beginning Equity (2012) + Stock Issuances + Net Income - Cash Dividends

    Now that you have Equity for 2013 you can solve for Assets for 2013. The formula is:
    Assets (2013) = Liabilities (2013) + Equity (2013).

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