Answer:
For ABC CORPORATION, stockholders' equity is $21,896,000,000
For XYZ CORPORATION, stockholders' equity is $19,722,000,000
Explanation:
Stockholders' Equity is the owner's residual interest in the business.
The formula for equity equals Asset minus liability
For ABC CORPORATION =
Asset = $39,100,000,000
Liability = $17,204,000,000
Stockholders' Equity = Asset - Liability
= $39,100,000,000 - $17,204,000,000 = $21,896,000,000
For XYZ CORPORATION =
Asset = $37,927000,000
Liability = $18,205000,000
Stockholders' Equity = Asset - Liability
= $37,927,000,000 - $18,205000,000 = $19,722,000,000
Answer:
ABC Corporation stockholders' equity = $21,896 (in millions)
XYZ Corporation stockholders' equity = $19,722 (in millions)
Explanation:
The accounting equation shows the relationship between the elements of a balance sheet namely; the assets, liabilities and stockholders' equity . This is given as
Assets = Liabilities + stockholders' equity
Hence for ABC Corporation, given in millions;
Assets = $39,100
Liabilities = $17,204
ABC Corporation stockholders' equity = $39,100 - $17,204
= $21,896
For XYZ Corporation, given in millions;
Assets = $37,927
Liabilities = $18,205
XYZ Corporation stockholders' equity = $37,927 - $18,205
= $19,722
