The total assets and total liabilities (in millions) of ABC Corporation and XYZ Corporation follow:

ABC XYZ Assets $39,100 $37,927 Liabilities 17,204 18,205

Determine the stockholders' equity of each company.

ABC Corporation stockholders' equity $ million

XYZ Corporation stockholders' equity $ million

ABC Corporation stockholders' equity = $21,896  (in millions)

XYZ Corporation stockholders' equity = $19,722  (in millions)

Explanation:

The accounting equation shows the relationship between the elements of a balance sheet namely; the assets, liabilities and stockholders' equity . This is given as

Assets = Liabilities + stockholders' equity

Hence for ABC Corporation, given in millions;

Assets = $39,100

Liabilities = $17,204

ABC Corporation stockholders' equity = $39,100 - $17,204

= $21,896

For XYZ Corporation, given in millions;

Assets = $37,927

Liabilities = $18,205

XYZ Corporation stockholders' equity = $37,927 - $18,205

= $19,722