Question

In 2016, Caterpillar Inc. reported the following (in millions):
Current Assets $31,967
Lont-term Assets $42,737
Current Liabilities $26,132
Total Liabilities $61,491
1. What amount did Caterpillar report as equity in 2016?

Answer 1

Answer:

$13,213 million

Explanation:

As we know that

The accounting equation is    

Total assets = Total liabilities + stockholder equity

where,

Total assets = Current assets + long term assets

                    = $31,967 + $42,737

                    = $74,704 million

And, the total liabilities is $61,491 million

So, the equity reported in 2016 is

= $74,704 million - $61,491 million

= $13,213 million