Final answer:
Stockholders' equity for Builtrite can be calculated using the accounting equation Assets = Liabilities + Stockholders' Equity, which gives us a result of $125,000 when we subtract the total liabilities ($185,000) from the total assets ($310,000).
Step-by-step explanation:
The student has presented a basic business calculation related to a balance sheet and is specifically asking to determine the stockholders' equity of Builtrite. To calculate stockholders' equity, we need to use the basic accounting equation: Assets = Liabilities + Stockholders' Equity. According to the problem, Builtrite has total assets calculated by adding current assets ($90,000) and fixed assets ($220,000), which equals $310,000. The total liabilities are given as $185,000. Now we can rearrange the equation to solve for stockholders' equity: Stockholders' Equity = Assets - Liabilities, yielding $310,000 - $185,000, which equals $125,000.
To calculate stockholders' equity, we need to subtract total liabilities from total assets. In this case, the total liabilities are $185,000. We can find the total assets by adding current assets ($90,000) and fixed assets ($220,000). So, the total assets are $310,000. Substituting these values into the equation, we get:
Total Stockholders' Equity = Total Assets - Total Liabilities
Total Stockholders' Equity = $310,000 - $185,000 = $125,000
Therefore, the correct answer is c. $125,000.