Question

As of December 31, Drake Inc. reported the following (in millions): Current AssetsLong-term AssetsCurrent LiabilitiesTotal Liabilities $31,967$42,737$26,132$61,491 What amount did Drake Inc. report as equity on December 31

Answer 1

Drake Inc. reported an equity of $13,213 million on December 31, which was calculated by subtracting total liabilities ($61,491 million) from total assets ($74,704 million) based on the basic accounting equation.

Step-by-step explanation:

The student asked what amount Drake Inc. reported as equity on December 31. To determine this, we can use the basic accounting equation:

Assets = Liabilities + Equity

From the information provided, we can substitute the values into the equation:

Total Assets (Current Assets + Long-term Assets) = $31,967 million + $42,737 million = $74,704 million

Total Liabilities = $61,491 million

Now we solve for Equity:

Equity = Total Assets - Total Liabilities

Equity = $74,704 million - $61,491 million

Equity = $13,213 million

Therefore, on December 31, Drake Inc. reported $13,213 million as equity.

Answer 2

$13,213

Step-by-step explanation:

The computation of the equity is shown below:

As we know that

Total assets = total liabilities + total stockholder equity

here

Totalassets be

= $31,967 + $42,737

= $74,707

ANd, the total liabilities is $61,491

So, the equity should be

= $74,707 - $61,491

= $13,213