Question

Last year ABC company had the following data Net Sales million) # 1,200 Cost of G . Sold 780 Gross Profit Margin na 420 Depre

Cash 200 3000 900 A keceivables inventory Net fixed assets Notes payable Acounts payable Acruals 88 8 8 8 220.00 H0.00 20.00

Hello, I have this exercise from my Investment class but I need to know the procedure of how to reach the results. Could you help me? Thank you.

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Answer #1

In order to find Total equity you must add these items:

1) Common stock

2) Additional paid in capital

3) Retained earnings

In the above case, Total equity would be = common stock + Additional paid in capital + retained earnings

= $100 + 200 + $570

= $870

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