Dimeback, Inc., is obligated to pay its creditors $5030 during the year. What is the market...
Dimeback, Inc., is obligated to pay its creditors $5030 during the year. What is the market value of the shareholders’ equity if assets have a market value of $9182?
Homework Answers
The assets and liability side of the balance sheet should always tally as all the transactions are given double impact which are ultimately reflected on the balance sheet of the company which is one of the financial statement of the company.
Hence, the accounting equation of balance sheet is given below
Total assets of the company = Liabilities + Shareholders equity
Therefore, we can calculate the shareholders equity as = Total assets of the company Less Liabilities
Shareholders equity = $9,182 - $5,030
Shareholders equity = $4,152
Therefore, the market value of shareholders equity of the company is $4,152
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