Question

You know the following information about the Miller State Bank Gross Loans$300 Miscellaneous Assets$50 Deposits$390 Total Equity$50 Common Stock Par$5 Non-Deposit Borrowings$60 Investment Securities$150 Net Premises$40 Surplus$5 Allowance for Loan Losses$50 Deposits$390 Total Assets$500 Gross Premises $70 Given this information, what is this firm's Total Liabilities

Answer 1

The Firm's Total Liabilities is $450

Step-by-step explanation:

Use the accounting equation to calculate the Total Liabilities

Total Assets = Total Equity + Total Liabilities

Now rearrange the accounting equation to make the required formula

Total Liabilities = Total Assets - Total Equity

Where

Total Assets = $500

Total Equity = $50

Placing values in the formula

Total Liabilities = $500 - $50

Total Liabilities = $450