Question

Midyear on July 31st, the Digby Corporation's balance sheet reported:

Total Assets of $207.448 million
Total Common Stock of $6.350 million
Cash of $10.050 million
Retained Earnings of $44.713 million.

What were the Digby Corporation's total liabilities?

a.$162.735 million.

b.$166.435 million.

c.$156.385 million.

d.$146.335 million.

Answer 1

c. $ 156.385 million is the amount of total liabilities

Step-by-step explanation:

Computation of total liabilities

Assets = Liabilities + Equity

Total assets $ 207.448 million

Less: Total Common stock $ 6,350 million

Less: Retained earnings $ 44.713 million

Total equity $ 51, 063 million

Total liabilities $ 156,385 million

$ 207,448 million - $ 51,063 million = $ 156,385 million

The cash account given in the data is not considered as this amount would have already been included in the total assets figure.