Question

BANA Co. has current assets of $150,000 and total assets of $300,000. BANA Co. has current liabilities of $160,000 and total liabilities of $200,000. BANA Co's owner's equity is

Answer 1

Given:

Current Assets = $150,000

Total Assests = $300,000.

Current Liabilities = $160,000

Total Liabilities = $200,000

To Find:

The equity of the owner

Solution:

Equity is the left out value in any business taking into account all the total liabilities.

Equity = Total Assets - Total Liabilities

= 300,000 - 200,000.

= 100,000

Answer: The total equity of BANA Co is 100,000