Midyear on July 31st, the Chester Corporation's balance sheet reported: Total Assets of $81.965 million Total Common Stock of $2.540 million Cash of $4.020 million Retained Earnings of $17.152 million. What were the Chester Corporation's total liabilities?

  Total Liabilities  = $62.273 million  

Explanation:

The accounting equation state that :

Total assets = capital + liabilities.

This is a fundamental relationship that underpins the preparation of financial statements

Capital for a company is represented by the shareholders funds which is the book value of issued common stock, share premium plus the retained earnings.

So we can apply the equation to the figures of Chester Corporation

81.965  =( $2.540 + 17.152 ) + liabilities

Liabilities =  81.965  - ( $2.540 + 17.1552 )

                = $62.273 million

Total Liabilities  = $62.273 million

the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy