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  2. In this example:

    • Total assets (current and non-current) amount to $450,000, representing what the company owns.
    • Total liabilities (accounts payable and long-term debt) sum up to $170,000, showing the company’s obligations.
    • Shareholders’ equity (common stock and retained earnings) totals $280,000, reflecting the owners’ interest in the company’s assets.
    accountend.com/understanding-balance-sheets-definition-examples-and-importance/
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