Homework Soursehe total assets and total liabilities of Pats Coffee Tea In
he total assets and total liabilities of Pat\'s Coffee & Tea Inc. and Pam\'s Corporation are shown below.
Determine the owners\' equity of each company.
| Pat\'s Coffee & Tea Inc. (in millions) | Pam\'s Corporation (in millions) | |||||||
| Assets | $51,564 | $50,017 | ||||||
| Liabilities | 22,688 | 24,008 |
Solution
Answer:
the owners\' equity of each company.
Owner\'s equity
Pat\'s Coffee &
Tea Inc. (in millions)
28,876
Pam\'s Corporation (in millions)
26,009
Working notes for the answer
In the balance sheet
Total assets = total Liability
we further bifurcate this formula as under
Total assets = total Liability + share holders equity
So if we want to find out the share holders equity, we can get as under
share holders equity= Total assets - total Liability
Pat\'s Coffee &
Tea Inc. (in millions)
Pam\'s Corporation (in millions)
Total Assets (A)
51,564
50,017
Less:
Total Liability (B)
22,688
24,008
Share holder\'s Equity (A-B)
28,876
26,009
| Owner\'s equity | |
| Pat\'s Coffee & | 28,876 |
| Pam\'s Corporation (in millions) | 26,009 |
