Liability equal one-third of the total assets, equity is 160000. what is amount of the liability?
Answers:
Assets = Liabilities + Equity
Assets = 3 times the Liabilities
A = 3L, so rewriting the 1st string,
3L = L + E
3L = L + 160,000
3L - L = 160,000
2L = 160,000
L = 80,000 and since A = 3L, A = 3 x 80,000 = 240,000
So Assets = 240,000 and Liabilities = 80,000
480000
What are the total assets?
If the equity is the lone asset, consequently it's 1/3 of 160K or $53,333.
For adjectives companies: Assets = Liabilities + Equity
In your example: Liabilities = Assets / 3
and Equity = 160,000
So, surrounded by the first equation, you can replace Liabilities beside Assets / 3, and you can replace Equity beside 160,000.
Assets = (Assets / 3) + 160,000.
Using the foreign equation above, we can use algebra to numeral out how much is Assets: 240,000.
Now you can use the first equation to amount out how much is Liabilities.
240,000 = Liabilities + 160,000
Liabilities = 80,000
L = 1/3 of A
E = $160,000
A = E + L
A = $160,000 + 1/3 of A
2/3 A = 160,000
A = $239,880
L = A - E
L = 239,880 - 160,000 = 79,880
Liabilities equals $79,880