Craig Y. answered • 06/19/19
Personable Sr VP, CPA for Acctg, Finance, Business, Excel Tutoring
There is a lot of financial statement data presented here, however, virtually all of it has no bearing on the question. To start with, let's make better sense of the data by classifying by financial statement (note: U.S. terminology per GAAP is added in parentheses):
(In millions)
Income Statement Items:
Operation profit (Operating Income) 150
Interest Expense 15
Profit (Income) Before Tax 110
Taxes (Income Tax Expense) 11
Profit After Tax (Net Income) 99
Balance Sheet Items:
Non Current Liabilities 170
Common Stock ($.50/share) 100
Total Equity 1,250
The answer is 1,250. All of the data presented is irrelevant other than just one line item: Total Equity as Total Equity is equal to Net Assets. Put another way, the fundamental accounting equation of the Balance Sheet is: Assets = Liabilities + Equity. Subtract Liabilities from each side of the equation, and the result is Assets - Liabilities = Equity. Look up Net Assets, and you will find the definition to be: "Net Assets is equal to Assets minus Liabilities."
