Answer to Question #241181 in Accounting for samantha

Question

SFP Question 2

 

Liabilities = 40% of total Assets

Current Assets= 1,900,000 pesos

Noncurrent Assets= 500,000 pesos

 

How much is the value of Owner's Equity?

Answer 1

Noncurrent Assets + Current Assets = Owner's Equity + Liabilities

Owner's Equity = Noncurrent Assets + Current Assets - Liabilities

Owner's Equity = Noncurrent Assets + Current Assets - (Noncurrent Assets + Current Assets) * 40%

Owner's Equity = 500,000 + 1,900,000 - (500,000 + 1,900,000) * 40%

Owner's Equity = 1,440,000  pesos