Question

Compute the missing amount in the accounting equation for each company​ (amounts in​ billions):

	Assets	Liabilities	Stockholders' Equity
Water Street Bank	$ ?	$43	$35
Puffbelly Restaurant	30	?	23
Blake Gift Shop	34	7	?

Requirement

1. Which company appears to have the strongest financial​ position? Explain your reasoning.

Calculate the missing amounts. ​(Enter amounts in​ billions.)

	Assets	Liabilities	Stockholders' equity
Water Street Bank	$78	$43	$35
Puffbelly Restaurant	30	7	23
Blake Gift Shop	34	7	27

Which company appears to have the strongest financial​ position? Explain your reasoning. ​(Round the percentage to the nearest hundredth​ percent, X.XX%.)

Water Street Bank	appears to have the strongest financial position because its
	make up the smallest percentage of company assets. This percentage is		%.

Choose from any list or enter any number in the input fields and then click Check Answer.

Answer 1

Accounting Equation = Assets = Liabilities + Equity
	Assets	Liabilities	Equity
Water Street Bank	78	43	35
Puffbelly Restaurant	30	7	23
Blake Gift Shop	34	7	27
The strongest financial position is Blake Gift Shop
Because Liabilities make smallest % of assets
% = 7/34 = 20.59%

в с D Α 1 Accounting Equation = Assets = Liabilities + Equity 2 Assets Liabilities Equity =C3+D3 43 35 =B4-D4 23 34 7 =B5-C5 30 3 Water Street Bank 4. Puffbelly Restaurant 5 Blake Gift Shop 6 7 The strongest financial position is Blake Gift Shop 8 Because Liabilities make smallest % of assets 9 % = 7/34 = 20.59%