A company's balance sheet has total assets of $400,000 and total equity of$350,000. What are the total liabilities?

Step 1: Define the Problem

Identify the key components of the question that need to be addressed:

• Total assets = $400,000
• Total equity = $350,000
• Need to find total liabilities.

Step 2: Break Down the Problem

Divide the problem into smaller, manageable parts:

• Use the accounting equation: Assets = Liabilities + Equity.

Step 3: Apply Relevant Concepts

Use appropriate academic theories or formulas to solve each part of the problem:

• Rearrange the accounting equation to find liabilities: Liabilities = Assets - Equity.

Step 4: Analysis, Verify and Summarize

Analyze each part in detail if necessary, carry out the calculations by steps:

• Liabilities = $400,000 -$350,000.

Final Answer

Present the final result in a concise manner:

• Total liabilities are $50,000.