Explore BrainMass

Explore BrainMass

    Accounting Equation

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    I am not sure if I am using the right formula and have the right answer for these study questions. Can you please show me the formula for thee type of problems .

    1. If current assets equal $25,000, liabilities equal $40,000, and owners equity equals $55,000, the noncurrent assets equal _____?.

    2. If the current ratio is 2.2:1, current assets are 33,000, and noncurrent assets equal $55,000, then owners' equity is _____ .(Assume that all liabilities are current).

    3. What is the current ratio if noncurrent assets equal $60,000, total assets equal $95,000, and owners' equity equals $70,000?

    © BrainMass Inc. brainmass.com December 24, 2021, 6:31 pm ad1c9bdddf

    Solution Preview

    1. If current assets equal $25,000, liabilities equal $40,000, and owers' equity equals $55,000, the noncurrent assets equal _____?.

    We use the accounting equation - Total Assets = Liabilities + Equity
    we are given that liabilities = 40,000 and equity = 55,000. The total assets will be 40,000+55,000=95,000.
    Total Assets = ...

    Solution Summary

    The solution explains the use of the accounting equation to calculate the missing values.