Question

Drewson Health Foods has 16 comma 000 shares of $ 1 par common stock​ outstanding, which were issued at $ 15 per share. Drewson also has a deficit balance in Retained Earnings of $ 83 comma 000. How much is Drewson​'s total​ stockholders' equity?

Answer 1

SE 157,000

Step-by-step explanation:

We do shares outstanding times issued per share to get the total paid-in capital. Then subtract the retained earnigns negative balance to get the Drewson total stockholders equity

`16,000 * 15 = 240,000 \\Retained \: Earnings \: (83,000) \\Stockholders \: Equity \: 157,000`