All-Stores, Inc., is a holding company that has voting control over both General Stores and Star Stores.

Question:

All-Stores, Inc., is a holding company that has voting control over both General Stores and Star Stores. All-Stores owns General Stores and Star Stores common stock valued at $15,000 and $12,000, respectively. General’s balance sheet lists $130,000 of total assets; Star has total assets of $110,000. All-Stores has total common stock equity of $20,000.

a. What percentage of the total assets controlled by All-Stores does its common stock equity represent?

b. If a stockholder holds $5,000 worth of All-Stores common stock equity, and this amount gives this stockholder voting control, what percentage of the total assets controlled does this stockholder’s equity investment represent?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...