The total assets and total liabilities of Peet’s Coffee & Tea Inc. and Starbucks Corporation are shown below.
Peet’s Coffee & Tea (in millions) Starbucks (in millions)
Assets $209 $6,386
Liabilities 36 2,711
Determine the owners’ equity of each company.
Answer:
Peet’s Coffee & Tea’s owners’ equity: $209 – $36 = $173
Starbucks' owners’ equity: $6,386 – $2,711 = $3,675