Vibrant Company has current assets of [tex]$\$75,000$[/tex] and long-term assets of [tex]$\[tex]$100,000$[/tex][/tex]. Its total liabilities equal [tex]$\$40,000$[/tex].

Stockholders' equity is:

A. [tex]$\[tex]$140,000$[/tex][/tex]

B. [tex]$\$175,000$[/tex]

C. [tex]$\[tex]$135,000$[/tex][/tex]

D. [tex]$\$215,000$[/tex]



Answer :

To find the stockholders' equity for Vibrant Company, we'll follow these steps:

1. Calculate the total assets:
Total assets are the sum of current assets and long-term assets.
- Current assets: \[tex]$75,000 - Long-term assets: \$[/tex]100,000

[tex]\[ \text{Total assets} = \text{Current assets} + \text{Long-term assets} = 75,000 + 100,000 = 175,000 \][/tex]

2. Determine the stockholders' equity:
Stockholders' equity is calculated as the difference between total assets and total liabilities.
- Total assets: \[tex]$175,000 - Total liabilities: \$[/tex]40,000

[tex]\[ \text{Stockholders' equity} = \text{Total assets} - \text{Total liabilities} = 175,000 - 40,000 = 135,000 \][/tex]

Therefore, the stockholders' equity for Vibrant Company is \[tex]$135,000. The correct answer is: C. \$[/tex]135,000