Question

midyear on july 31st, the baldwin corporation's balance sheet reported: total liabilities of $128.303 million cash of $10.050 million total assets of $207.683 million retained earnings of $44.902 million. what was the baldwin corporation's common stock?

Answer 1

The Baldwin Corporation's common stock is calculated using the accounting equation Assets = Liabilities + Shareholders' Equity and subtracting liabilities and retained earnings from total assets, resulting in a value of $34.478 million.

Step-by-step explanation:

The question asks for the calculation of the Baldwin Corporation's common stock based on the provided balance sheet data. To determine the common stock, we use the basic accounting equation: Assets = Liabilities + Shareholders' Equity. In this case, shareholders' equity can be further broken down into retained earnings and common stock. To find common stock, we rearrange the equation to: Common Stock = Assets - Liabilities - Retained Earnings. Using the given figures, we get Common Stock = $207.683 million - $128.303 million - $44.902 million, which results in a common stock value of $34.478 million.