Midyear on July 31st, the Andrews Corporation's balance sheet
reported:
Total Liabilities of $58.711 million
Total Common Stock of $2.540 million
Cash of $4.020 million
Retained Earnings of $8.462 million.
What were the Andrews Corporation's total assets?
Solution:
We know that
Total Assets = Total of Equity + Total of liabilities
As per the information given in the question we have
Total Liabilities = $ 58.711 million
Total Common Stock = $ 2.540 million
Retained Earnings = $ 8.462 million.
We know that Total of equity = Total Common Stock + Retained Earnings
Thus Total Equity = $ 2.540 Million + 8.462 Million = $ 11.002 Million
Applying the above values in the formula we have
Total assets = $ 11.002 Million + $ 58.711 Million
= $ 69.713 Million
Thus the Andrews Corporation's total assets = $ 69.713 Million
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