Question

Acme Inc. has Assets of $119172 and Liabilities of $45298. Then the firm receives $23685 from...

Acme Inc. has Assets of $119172 and Liabilities of $45298. Then the firm receives $23685 from an investor in exchange for new stock which the firm issues to the investor. What is the value of Stockholders' Equity after the investment? Enter the value in whole numbers with no decimals.

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Answer #1

We know that total assets =Liabilities +Equity.

Calculation of Stockholder's equity after issue of new stock

A

Total Assets

$ 119,172

B

Less: liabilities

$    45,298

C= A-B

Stockholder's equity before issue of new stock

$    73,874

D

Add: Issue of new stock

$    23,685

E=C+D

Value of stockholder's equity

$    97,559

Value of Stockholders' Equity after the investment=$97,559

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