Answer:
a. True
Explanation:
A competitive market is a market in which there are many buyers and sellers. Also, sellers have similar goods and and they don't have the power to influence the market. This means that in a competitive market companies have to accept the price define by the market and if the price is less than average total cost for all possible levels of production, a firm in a competitive market will choose to exit (or not enter) the market as it doesn't have the possibility to do something to influence the price and it won't be able to make a profit. According to that, the statement is true.
Sufra Corporation is planning to sell 150,000 units for $2.90 per unit and will break even at this level of sales. Fixed expenses will be $93,000. What are the company's variable expenses per unit
Answer:
$2.28
Explanation:
Breakeven point is the number of units produced and sold at which net income is equal to zero.
Breakeven = F / P - V
F = fixed
P = price
V = variable cost
150,000 = $93,000 / $2.90 - V
Multiply both sides of the equation by $2.90 - V
= ($2.90 - V)150,000 = $93,000
$435,000 - 150,000V = $93,000
V = $2.28
I hope my answer helps you
On February 1, a customer's account balance of $2,700 was deemed to be uncollectible. What entry should be recorded on February 1 to record the write-off assuming the company uses the allowance method? Multiple Choice Debit Bad Debts Expense $2,700; credit Accounts Receivable $2,700. Debit Bad Debts Expense $2,700; credit Allowance for Doubtful Accounts $2,700. Debit Accounts Receivable $2,700; credit Allowance for Doubtful Accounts $2,700. Debit Allowance for Doubtful Accounts $2,700; credit Accounts Receivable $2,700. Debit Allowance for Doubtful Accounts $2,700; credit Bad Debts Expense $2,700.
Answer:
On February 1, a customer's account balance of $2,700 was deemed to be uncollectible.
The entry to be recorded on February 1 to record the write-off assuming the company uses the allowance method is:
Debit Allowance for Doubtful Accounts $2,700; credit Accounts Receivable $2,700.
Explanation:
Using the allowance method, every bad debt entry is first reflected in the Allowance for Doubtful Accounts before it is taken to the bad debt expense account.
The entries above reduce the Accounts Receivable account by the amount of the write-off and reduces the Allowance for Doubtful Accounts by the same amount. Any recovery of written off debt is also treated in the Allowance for Doubtful Accounts and the Accounts Receivable account in revised order. This method is unlike the direct write-off method. With the direct write-off method, the Accounts Receivable is credited with the amount of the write-off and the write-off is expensed in the Bad Debts Expense account directly.
Identify the following questions as most likely to be asked by an internal or an external user of accounting information
1. What are reasonable payroll benefits and wages?
2. Should we make a five-year loan to that business?
3. What are the costs of our product's ingredients?
4. Do income levels justify the current stock price?
5. Should we spend additional money for redesign of our product?
6. Which firm reports the highest sales and income?
7. What are the costs of our service to customers?
Answer:
The answer is:
1. - Internal user of accounting information(management)
2. External user of accounting information(banks)
3. Internal user of accounting information(management)
4. External user of accounting information(potential investors)
5. Internal user of accounting information(management)
6. External user of accounting information
7. Internal user of accounting information(management)
Explanation:
Internal users of accounting information are people within a organization who use the accounting information for decision making. Examples of are the management and employees. External users are people that are not within the organization. Examples are government, the public, banks, potential investors etc
1. - Internal user of accounting information(management)
2. External user of accounting information(banks)
3. Internal user of accounting information(management)
4. External user of accounting information(potential investors)
5. Internal user of accounting information(management)
6. External user of accounting information
7. Internal user of accounting information(management)
Sony has a better opportunity to reach the potential Millennial market segment, compared to unestablished manufacturers, because of its:_______
Answer:
full spectrum of product offerings
Explanation:
Sony has always been striving to serve its customer better. Millennial are the top brands that are considered in market. They are the organizations which capture major market share and are massive market segment. Sony has offered wide range of products to its customers.
As the income of bus riders increased, the wages of bus drivers increased simultaneously. How does this affect the market for bus rides (inferior good)?
Answer:
The demand curve and supply curve will shift leftwards.
Explanation:
The increase in the income of riders will decrease the number of bus rides because there is an inverse relationship between income and inferior goods. Therefore, the demand curve for bus rides will shift leftwards. Moreover, the increase in wages is an input cost, therefore, the rise in input cost will shift the supply curve leftwards.
On January 1, 2019, Brooks Inc. borrows $90,000 from a bank and signs a 5% installment note requiring four annual payments of $25,381 at the end of each year. Complete the necessary journal entry on 12/31 by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
No Date General Journal Debit Credit
1 12/31 Interest expense 4,500
Notes payable 90,000
Answer:
Brooks Inc.
Journal entries
DATE General Journal DEBIT ($) CREDIT ($)
12/31 Interest Expense 4,500.00
(90,000 x 5%)
Notes Payable (Balancing Figure) 20,881.00
Cash 25,381.00
A customer owns 100 shares of ABC stock and owns 1 ABC Put option. The customer wishes to sell the stock by exercising the put, but wishes to retain a recently declared cash dividend. The first date that the customer can exercise the put and still retain the dividend is:
Answer:
July 15th
Explanation:
Hope this helps :)
Complements are products or services that have a potential impact on the _________ of the products or services of that company.
Answer:
Value
Explanation:
Hope this helps :)
Boxwood Company sells blankets for $30 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. Date Blankets Units Cost May 03 Purchase 6 $14 10 Sale 4 17 Purchase 12 $16 20 Sale 4 23 Sale 3 30 Purchase 12 $18 Assuming that the company uses the perpetual inventory system, determine the ending inventory for the month of May using the LIFO inventory cost method.
Answer:
The ending inventory for the month of May using the LIFO inventory cost method is $324.
Explanation:
LIFO
LIFO method assumes that the last goods purchased are the first ones to be issued to the final customer.
This means valuation of inventory will use the value of the earliest goods purchased.
Ending Inventory : 2 units × $14 = $28
5 units × $16 = $80
12 units × $18 = $216
Total = $324
Conclusion :
The ending inventory for the month of May using the LIFO inventory cost method is $324.
g Ryngard Corp's sales last year were $24,000, and its total assets were $16,000. What was its total assets turnover ratio (TATO).
Answer:
1.50
Explanation:
TATO = (net sales)/(total assets)
= (24000/16000) = 1.50
The total asset turnover ratio (TATO) for Ryngard Corp was 1.50 last year.
Prepare the Budgets given the following information Budgeted sales are expected to be: January 200 Units February 300 Units March 400 Units April 300 Units May 400 Units Selling Price $10 Per unit A. Prepare the sales Budget (5 points) Sales Budget January February March Quarter Budgeted sales in units 200 300 400 900 Times selling price per unit $10 $10 $10 $10 Budgeted sells in dollars $2,000 $3,000 $4,000 $9,000 B. Prepare the Production Budget (5 points)
Answer:
Sales Budget
January February March April May
Units Sold 200 300 400 300 400
Price per unit $10 $ 10 $ 10 $ 10 $ 10
Sales Rev $ 2.000 $ 3.000 $ 4.000 $ 3.000 $ 4.000
Explanation:
We have to multiplithe amount of units sold each month by the sales price per unit of each month.
For the second question, which is the production budget we require the beginning inventory at Jan 1st and the desired inventory policy else, we cannot complete it. Please add this as details for the question Thank you =)
Exhibit 15.1 Zorn Corporation is deciding whether to pursue a restricted or relaxed working capital investment policy. The firm's annual sales are expected to total $4,400,000, its fixed assets turnover ratio equals 4.0, and its debt and common equity are each 50% of total assets. EBIT is $150,000, the interest rate on the firm's debt is 10%, and the tax rate is 40%. If the company follows a restricted policy, its total assets turnover will be 2.5. Under a relaxed policy its total assets turnover will be 2.2. Refer to Exhibit 15.1. Assume now that the company believes that if it adopts a restricted policy, its sales will fall by 15% and EBIT will fall by 10%, but its total assets turnover, debt ratio, interest rate, and tax rate will all remain the same. In this situation, what's the difference between the projected ROEs under the restricted and relaxed policies
Answer:
difference between ROEs = 10.83% (restricted) - 9% (relaxed) = 1.83%
Explanation:
total annual sales = $4,400,000
EBIT = $150,000
net income = $150,000 x (1 - 40%) = $90,000
restricted policy:
asset turnover = 2.5
sales = $3,740,000
EBIT = $135,000
net income = $81,000
assets = $3,740,000 / 2.5 = $1,496,000
equity = $1,496,000 x 50% = $748,000
ROE = $81,000 / $748,000 = 10.83%
relaxed policy:
asset turnover = 2.2
sales = $4,400,000
EBIT = $150,000
net income = $90,000
assets = $4,400,000 / 2.2 = $2,000,000
equity = $2,000,000 x 50% = $1,000,000
ROE = $90,000 / $1,000,000 = 9%
difference between ROEs = 10.83% - 9% = 1.83%
Winkle Corporation uses the FIFO method in its process costing system. Beginning inventory in the mixing processing center consisted of 5,000 unites, 90% complete with respect to conversion costs. Ending work in process inventory consisted of 2,000 units, 60% complete with respect to conversion costs. If 10,000 units were transferred to the next processing center during the period, how many would the equivalent units for conversion costs be?
a. 10,000 units
b. 12,200 units
c. 12,000 units
d. 6,700 units
Answer:
d. 6,700 units
Explanation:
The computation of the equivalent units for conversion cost by using the FIFO method is shown below:
= Beginning inventory units × remaining percentage + units started and completed + ending inventory units × completion percentage
= 5,000 × 10% + (10,000 - 5,000) + 2,000 × 60%
= 500 + 5,000 + 1,200
= 6,700 units
We simply applied the above formula
Brian Lee is 30 years and wants to retire when he is 65. So far he has saved (1) $5,850 in an IRA account in which his money is earning 8.3 percent annually and (2) $4,320 in a money market account in which he is earning 5.25 percent annually. Brian wants to have $1 million when he retires. Starting next year, he plans to invest the same amount of money every year until he retires in a mutual fund in which he expects to earn 8.22 percent annually. How much will Brian have to invest every year to achieve his savings goal?
Answer:
he must invest $4,855.64 during each of the following 35 years
Explanation:
years until retiring = 65 - 30 = 35 periods
desired future value $1,000,000
first we must find the future value of his current investments:
$5,850 x (1 + 0.083)³⁵ = $95,312.94
$4,320 x (1 + 0.0525)³⁵ = $25,897.47
total future value = $121,210.41
this means that he needs to save $1,000,000 - $121,210.41 = $878,789.59 more by the time he reaches 65 years of age
we need to use the formula to calculate future value of an annuity:
FV = payment x annuity factor (FV annuity, 8.22%, 35 periods)
FV = $878,789.59 annuity factor (FV annuity, 8.22%, 35 periods) = 180.98322$878,789.59 = payment x 180.98322
payment = $878,789.59 / 180.98322 = $4,855.64
he must invest $4,855.64 during each of the following 35 years
An aging of a company's accounts receivable indicates that $3140 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $820 debit balance, the adjustment to record bad debts for the period will require a:__________
a. debit to Bad Debt Expense for $3140.
b. credit to Allowance for Doubtful Accounts for $820.
c. debit to Bad Debt Expense for $3960.
d. debit to Bad Debt Expense for $2320.
Answer:
c. debit to Bad Debt Expense for $3960.
Explanation:
The journal entry to record the bad debt expense is shown below;
Bad debt expense Dr ($3,140 + $820) $3,960
To Allowance for doubtful debts $3,960
(Being the bad debt expense is recorded)
For recording this we debited the bad debt expense as it increased the expenses and credited the allowance for doubtful debts as it decreased the assets
Therefore option c is correct
Pledging receivables: A) Allows firms to raise cash. B) Allows a firm to retain ownership of its receivables. C) Does not transfer risk of bad debts to the lender. D) Should be disclosed in the financial statements. E) All of the above
Answer:
E
Explanation:
Pledging receivables is when the receivables are used as collateral during a financial arrangement. When a business uses it's business assets as collateral to gain a loan.
All the options in the question constitutes what pledging receivables consists. Therefore option E is the right answer.
The journal entry to record the transfer of partially completed work in process to the next process in process costing is a(n):
Answer:
Explanation:
The Journal Entry in these types of situations is done as Debit Work in Process-department #2 and credit Work in Process-department #1. Since it is being transferred from one to the other meaning the first department is losing the completed work (credit) while the second department is gaining the completed work (debit)
When unemployment is high, government policymakers might decide to do which of the following?
a. Decrease the amount of funds in the economy available for loans
b. Decrease government spending on goods and services
c. Increase government spending on goods and services
d. Raise taxes
Answer:
Option C is correct.
Explanation:
The option is C, “Increase government spending on goods and services” is correct because the spending by the government will create new employment opportunities. Therefore, this will decrease unemployment. However, if the government decreases the loan funds in the economy, decreases the spending on goods and services, and rises the taxes then it will raise unemployment in the economy.
In the case when the unemoloyment is high, the government policymakers should increase the government spending on the goods and services.
The following information should be considered:
The spending by the government developed the new employment opportunities.Due to this, the unemployment should decreased.In the case when the government reduced the loan funds so it reduced the spending on goods & services.Learn more: brainly.com/question/17429689
For financial accounting purposes, what is the total amount of product costs incurred to make 24,500 units
Answer:
The product cost for 24,500 units is $497,350.
Explanation:
The reason is that the the product cost always includes all the variable production cost and specific fixed production cost. In this scenario, direct material cost, direct labor cost, variable manufacturing overhead cost are variable production cost whereas the fixed manufacturing cost is specific fixed production cost which will form part of product cost. The remainder of the cost left is period cost.
Direct materials (24,500 * $7.7 per unit) $188,650
Direct labor (24,500 * $4.7 per unit) $115,150
Variable manufacturing overhead (24,500 * $2.2 per unit) $53,900
Fixed manufacturing overhead (24,500 * $5.7 per unit) $139,650
Total product costs $497,350
Direct-mail questionnaires should be kept to a maximum of how many pages? A.One B.Two C.Three D.Four
Answer:
One page
Explanation:
Direct mail questionnaires should be kept to a maximum of a single page.
This is because the target audience of these mails which are the respondents will treat this like they treat regular mails and my not be disposed to answering or giving responses.
So an increased number of pages would surely further decrease the attention the questionnaire would receive from these respondents.
Thus, it is best that the questionnaire is restricted to a single page.
An individual who is not party to the contract between a CPA and the client, but who is known by both and is intended to receive certain benefits from the contract is known as:
Answer:
Third party beneficiary.
Explanation:
This is easily seen in contracts as it is said that a third party beneficiary is a person that benefits from an agreement between two persons or a contract between two persons. This is despite the fact that this said person has no effect or was not in any way a part of the said contract.
A third party beneficiary can be denied the rights to compensation of the contract, especially when contract is not fulfilled.
Rights which makes the third party beneficiary valid and concretely a part of the contact are been attached and solidified if the said contract comes through.
Pace corporation acquired 100 percent of spin company's common stock on January 1, 20X9. Balance sheet data for the two companies immediately following the acquisition follow:
Item Pace Corporation Spin Company
Cash $30,000 $25,000
Accounts Receivable 80,000 40,000
Inventory 150,000 55,000
Land 65,000 40,000
Buildings and Equipment 260,000 160,000
Less: Accumulated Depreciation (120,000) (50,000)
Investment in Spin Company Stock 150,000
Total Assets $615,000 $270,000
Accounts Payable $45,000 $33,000
Taxes Payable 20,000 8,000
Bonds Payable 200,000 100,000
Common Stock 50,000 20,000
Retained Earnings 300,000 109,000
Total Liabilities and Stockholders’ Equity $615,000 $270,000
At the date of the business combination, the book values of Spin's net assets and liabilities approximated fair value except for inventory, which had a fair value of $60,000, and land, which had a fair value of $50,000. The fair value of land for Pace Corporation was estimated at $80,000 immediately prior to the acquisition.
1. Based on the preceding information, at what amount should total land be reported in the consolidated balance sheet prepared immediately after the business combination?
a. $130,000
b. $105,000
c. $115,000
d. $120,000
2. Based on the preceding information, what amount of total assets will appear in the consolidated balance sheet prepared immediately after the business combination?
a. $756,000
b. $735,000
c. $750,000
d. $642,000
3. Based on the preceding information, what is the differential associated with the acquisition?
a. $15,000
b. $21,000
c. $6,000
d. $10,000
4. Based on the preceding information, what amount of goodwill will be reported in the consolidated balance sheet prepared immediately after the business combination?
a. $0
b. $21,000
c. $6,000
d. $15,000
5. Based on the preceding information, what amount of liabilities will be reported in the consolidated balance sheet prepared immediately after the business combination?
a. $615,000
b. $406,000
c. $300,000
d. $265,000
Answer:
Pace Corporation and Spin Company
1. Land should be reported in the consolidated balance sheet as
a. $130,000
2. Total assets:
b. $735,000
3. The differential associated with the acquisition:
b. $21,000
4. Goodwill
b. $21,000
5. Amount of liabilities in the consolidated balance sheet:
b. $406,000
Explanation:
a) Data:
Item Pace Spin
Corporation Company
Cash $30,000 $25,000
Accounts Receivable 80,000 40,000
Inventory 150,000 55,000
Land 65,000 40,000
Buildings and Equipment 260,000 160,000
Less: Accumulated Depreciation (120,000) (50,000)
Investment: Spin Company Stock 150,000
Total Assets $615,000 $270,000
Accounts Payable $45,000 $33,000
Taxes Payable 20,000 8,000
Bonds Payable 200,000 100,000
Common Stock 50,000 20,000
Retained Earnings 300,000 109,000
Total Liabilities and Stockholders’
Equity $615,000 $270,000
b) Consolidated Balance Sheets
Item Pace Spin Total
Corporation Company Group
Cash $30,000 $25,000 $55,000
Accounts Receivable 80,000 40,000 120,000
Inventory 150,000 60,000 210,000
Land 80,000 50,000 130,000
Buildings and Equipment 260,000 160,000 420,000
Less: Accumulated
Depreciation (120,000) (50,000) (170,000)
Investment:
Spin Company Stock 150,000 0
Goodwill 21,000
Total Assets $630,000 $285,000 $786,000
Accounts Payable $45,000 $33,000 $78,000
Taxes Payable 20,000 8,000 28,000
Bonds Payable 200,000 100,000 300,000
Common Stock 50,000 20,000 50,000
Retained Earnings 300,000 109,000 300,000
Assets Revaluation 15,000 15,000 30,000
Total Liabilities and Stockholders’
Equity $630,000 $285,000 $786,000
c) Differential on acquisition = investment (of subsidiary) - net assets
= $150,000 - ($270,000 - 141,000) = $21,000
You need to borrow money and you are considering two loans. The terms of the two loans are equivalent with the exception of the interest rates. Loan A offers a stated rate of 3.125% compounded monthly. Loan B offers a stated rate of 3.15% compounded semi-annually. What are the effective annual rates for the loans? Which one do you prefer
Answer:
For Loan A = 3.170%
For Loan B = 3.174%
Loan B has a higher effective annual rate.
Explanation:
The computation of effective annual rates for the loans is shown below:-
For Loan A
We will assume effective annual rate is a
Stated rate(r) = 3.125% compounded monthly
= Number of periods in an year n = 12
So,
(1 + a) = (1 + r ÷ n) × n
= a = (1+0.03125 ÷ 12) × 12 - 1
= 0.03170
or
= 3.170%
For Loan B
We will assume the effective annual rate is b
Stated rate (r) = 3.15% compounded semi annually
= Number of periods in an year n = 2
So
(1 + a) = (1 + r ÷ n) × n
= a = (1 + 0.0315 ÷ 2) × 2 - 1
= 0.03174
or
= 3.174%
From the above calculation we can see that Loan B, is greater than Loan A and has a higher effective annual rate.
A company with a decreasing interest expense would see what change to its times interest earned?
a) An increase
b) A decrease
c) No change
d) Cannot be determined
Answer:
a) An increase
Explanation:
The times interest earned ratio is a ratio that measures the portion of the income or earning that can be used to pay for future interest expenses. Times interest earned ratio is also known as the coverage ratio and it can be computed using the following formula:
Times interest earned ratio = EBIT / Interest expense .............. (1)
Where EBIT denotes earning before interest and tax.
From equation, it can be seen that there is a negative relationship between times interest earned and interest expense. That is, as interest expense increases, times interest earned falls. On the other hand, as interest expense falls, times interest earned increases.
Therefore, the correct option is a) An increase, that is a company with a decreasing interest expense would see an increase to its times interest earned.
Fasheh Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.50 Direct labor $ 3.90 Variable manufacturing overhead $ 1.30 Fixed manufacturing overhead $ 13.50 Fixed selling expense $ 2.25 Fixed administrative expense $ 1.80 Sales commissions $ 0.50 Variable administrative expense $ 0.45 If 10,000 units are produced, the total amount of manufacturing overhead cost is closest to:
Answer:
$134,500
Explanation:
Total manufacturing overhead = Variable overhead + Fixed overhead
Variable overhead= $1.3 * 10,000 units= $13000
Fixed overhead = $13.50 * 9000 units = $121,500
Total manufacturing overhead= $13,000+$121,500
= $134,500
An investor who was not as astute as he believed invested $264,500 into an account 12 years ago. Today, that account is worth $204,000. What was the annual rate of return on this account
Answer:
-19.061%
Explanation:
interest earned= principal x time x interest rate
Interest earned = $264,500 - $204,000 = $-60,500
$-60,500 = $264,500 x 12 x interest rate
interest rate = -0.19061 = -19.061%
The __________ is based on all the goods and services produced in the economy, which make it a current-weights index. eco203
Answer:
The __Paasche Index or Current-Weighted Index_______ is based on all the goods and services produced in the economy, which make it a current-weights index.
Explanation:
The Current-Weighted Index is an index that calculates the weighted average of prices or quantities or with the weights used proportionate to the quantities or prices of the goods. At regular intervals, the weights have to re-calculated in line with the current realities. This regular re-calculation of the weights, which is the basis for its name, makes it current.
A fire has destroyed a large percentage of the financial records of the Excandesco Company. You have the task of piecing together information in order to release a financial report. You have found the return on equity to be 14.9 percent. Sales were $1,750,000, the total debt ratio was .33, and total debt was $651,000.
What is the return on assets (ROA)? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Return on assets __%
Answer:
10%
Explanation:
For computing the return on assets we have to do the following calculations:
As we know that
Total debt ratio = Total debt ÷ Total assets
0.33 = $651,000 ÷ Total assets
So,
Total assets = $1,972,727.27
Now the total equity is
Total assets = Total debt + Total Equity
$1,972,727.27 = $651,000 + Equity
So,
Equity = $1,321,727.27
Now
ROE = Net income ÷ Equity
0.1490 = Net income ÷ $1,321,727.27
Net income = $196,937
So,
ROA = Net income ÷ Total assets
= $196,937 ÷ $1,972,727.27
= 9.98%
= 10%
Assume that there is an autonomous increase in investment spending of $20 billion and the MPC is given as 0.4, and assuming taxes, imports, and savings are all equal and no leakages:
Answer:
a. 1.67
b. $33.4 billion
c. A larger MPC
Explanation:
a. The Spending Multiplier is used to calculate how much an Economy increases as a result of an extra dollar being put into it and can be calculated by using the following formula;
= 1 / ( 1 - MPC)
= 1/ ( 1 - 0.4
= 1.67
b. Total Change in GDP = Amount invested * Spending Multiplier
= 20 * 1.67
= $33.4 billion.
c. An Economy is helped when it's GDP increases. A higher Marginal Propensity to Consume (MPC) will help it more in that case because from the formula, a larger MPC would reduce the divisor of 1 resulting in a larger Spending Multiplier which will increase the GDP more per dollar.
To explain further, the MPC measures how much of an extra dollar that people in the Economy spend, if the MPC is higher it means they spend more which will contribute to a rise in Consumption which is part of GDP.
Use the following information for Meeker Corp. to determine the amount of equity to report. Cash $ 72,000 Buildings 126,500 Land 208,600 Liabilities 131,500 A. $22,600. B. $275,600. C. $407,100. D. $538,600. E. $285,600.
Answer:
$276,500
Explanation:
The computation of the total equity is shown below;
As we know that
Accounting equation is
Total assets = Total liabilities + total stockholder equity
where,
Total assets is
= Cash + land + buildings
= $72,000 + $208,600 + $126,500
= $407,100
And, the total liabilities is $131,500
So, the total stockholder equity is
= $407,100 - $131,500
= $276,500
We simply applied the above formula