Question

Midyear on July 31st, the Digby Corporation's balance sheet reported: Total Liabilities of $77.152 million Cash of $6.030 million Total Assets of $125.978 million Retained Earnings of $28.133 million. What was the Digby Corporation's common stock? Select: 1

$26.723 million

$20.693 million

$82.989 million

$76.959 million

Answer 1

Total liabilities + common stock + retained earnings = total assets

77.152 + common stock + 28.133 = 125.978

Common stock = 125.978 - 28.133 - 77.152 = 20.693

$ 20.693 millions is the common stock

(*note : we did not take cash into account since cash is included in the total assets *)