Question

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

Line Item Description ABC XYZ
Assets $60,593 $58,775
Liabilities 26,661 28,212
Determine the stockholders' equity of each company.

ABC Corporation stockholders' equity fill in the blank 1 of 2$
million
XYZ Corporation stockholders' equity fill in the blank 2 of 2$
million

Answer 1

To determine the stockholders' equity for each corporation, we can use the following formula:

\[ \text{Stockholders' Equity} = \text{Total Assets} - \text{Total Liabilities} \]

For ABC Corporation:
- Total Assets = $60,593 million
- Total Liabilities = $26,661 million

Calculating stockholders' equity for ABC Corporation:
\[ \text{Stockholders' Equity (ABC)} = 60,593 - 26,661 = 33,932 \text{ million} \]

For XYZ Corporation:
- Total Assets = $58,775 million
- Total Liabilities = $28,212 million

Calculating stockholders' equity for XYZ Corporation:
\[ \text{Stockholders' Equity (XYZ)} = 58,775 - 28,212 = 30,563 \text{ million} \]

Thus, the stockholders' equity for each company is:

**ABC Corporation stockholders' equity: 33,932 million**
**XYZ Corporation stockholders' equity: 30,563 million**