Stone Enterprises has $43,000 in cash, $16,000 in inventory, $23,000 balance due to creditors, and $35,000 balance due from customers

Accounting Dec 16, 2020

Stone Enterprises has $43,000 in cash, $16,000 in inventory, $23,000 balance due to creditors, and $35,000 balance due from customers. What is the amount of owner's equity?

Expert Solution

Basic accounting equation is Assets = Liabilities + Owner's Equity

To compute Owner's Equity the formula would be Assets - Liabilities, as follows:

Cash	$43,000
Inventory	16,000
Due from customers	35,000
Total Assets	$94,000

Due to creditors	$23,000
Total Liabilities	$23,000

Owner's Equity	$71,000

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