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Relation of assets, liabilities, and shareholders' equity

Recall that assets, liabilities, and shareholders' equity are the three main parts of a balance sheet.

Together, their relationship with each other "balances" the balance sheet.

This relationship is helpful to remember when you don't know the value of one of the main parts of a balance sheet! Suppose you have information about a company's assets and shareholders' equity. You can use your knowledge about their relationship to determine the company's liability.

In this exercise, you will practice doing just this!

This exercise is part of the course

Analyzing Financial Statements in Python

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Exercise instructions

  • Compute the total_liabilities using current_assets, non_current_assets, and shareholders_equity.

Hands-on interactive exercise

Have a go at this exercise by completing this sample code.

current_assets = 1500
non_current_assets = 3000
shareholders_equity = 1200

# Compute total liabilities
total_liabilities = ____
Edit and Run Code