Question 59639
Find assets and liability, when liability is 2/5 of assets and owner's equity is $95,000. Formula: Assets = Liability + Owner's Equity
Let assets be:x
Then liability is: (2/5)x
:
{{{x=(2/5)x+95000}}}
{{{x-(2/5)x=-(2/5)x+(2/5)x+95000}}}
{{{(5/5)x-(2/5)x=95000}}}
{{{(3/5)x=95000}}}
{{{(5/3)(3/5)x=(5/3)95000}}}
{{{x=158333.33}}}
Assets:x=$158,333.33
Liabilities:(2/5)x=(2/5)(158,333.33)=$63,333.33
Happy Calculating!!!