Calculate the Amount of Stockholders' Equity

What is the amount of the company's stockholders' equity?

Given common stock of $94, paid-in surplus of $310, total liabilities of $430, current assets of $430, and net fixed assets of $640, what is the amount of stockholders' equity?

Amount of Stockholders' Equity

The amount of the company's stockholders' equity is $404. Stockholders' equity represents the residual interest in the assets of a company after deducting liabilities.

Stockholders' equity is an important metric that reflects the ownership interest of shareholders in a company's assets. It consists of the capital contributed by shareholders and the retained earnings of the company. To calculate stockholders' equity, we add the common stock, paid-in surplus, and retained earnings.

In this case, we add the common stock of $94, paid-in surplus of $310, and calculate the retained earnings by subtracting the total liabilities and current assets from the total assets. Total assets are the sum of current assets and net fixed assets.

Total assets = $430 + $640 = $1,070

Retained earnings = $1,070 - $430 - $430 = $210

Stockholders' equity = $94 + $310 + $210 = $404

Therefore, the amount of the company's stockholders' equity is $404. This represents the ownership interest of shareholders in the company's assets after deducting its liabilities.

Stockholders' equity is a key financial metric that investors and analysts use to assess the financial health and stability of a company. Understanding stockholders' equity can provide valuable insights into the overall value of an organization and its ability to generate returns for its shareholders. It is essential for investors to monitor changes in stockholders' equity over time to gauge the company's performance and growth potential.