Midyear on July 31st, the Baldwin Corporation's balance sheet reported: Total Liabilities of $101.255 million Cash of $8.040 million Total Assets of $163.111 million Retained Earnings of $34.226 million. What was the Baldwin Corporation's common stock

Stock = 27.629 million

Explanation:

Baldwin Corporation

Balance Sheets

Assets

Cash of $8.040 million

Total Assets $163.111 million

Liabilities and Owner's Equity $163.111 million

Stock 27.629 million

Total Liabilities  $101.255 million

Retained Earnings  $34.226 million

According to Balance sheet approach total assets must equal total liabilities and Owner's Equity.

Total assets including cash are given which are equal to $163.111 million  and when we subtract total liabilities and retained earning from it we get the value of stock.

Stock = Total Assets- Total Liabilities - Retained Earnings

Stock = $163.111 million - $101.255 million-$34.226 million

Stock = 27.629 million

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