EX 1-4 Accounting equation

The total assets and total liabilities (in millions) of Green Mountain Coffee Roasters, Inc. and Starbucks Corporation follow:

            Green Mountain | Starbucks

Assets.             $3,616 | $8,219

Liabilities          1,345 | 3,110

Determine the stockholders’ equity of each company.

Answer:

Green Mountain Coffee Roasters’ stockholders’ equity: $3,616 – $1,345 = $2,271 

Starbucks’ stockholders’ equity: $8,219 – $3,110 = $5,109