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The value of shareholders' equity is $5,690.
Total assets = Current assets + Net fixed assets
Total assets = $2,090 + $9,830
Total assets = $11,920
The value of shareholders' equity is $5,690.
Total liabilities = Current liabilities + Long-term debt
Total liabilities = $1,710 + $4,520
Total liabilities = $6,230
Value of shareholders' equity = Total assets - Total liabilities
Value of shareholders' equity = $11,920 - $6,230
Value of shareholders' equity = $5,690.
Equity held by shareholders refers to the sum that a company's founders have contributed to the enterprise. This covers the funds they have directly invested as well as the total amount of profits the business has generated and reinvested since its establishment. The equity of the shareholders is calculated using this formula as the difference between total assets and total liabilities.
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