Tom’s Co. has₱26,000 in Cash, ₱13,000 in Supplies, and ₱27,000 in Inventory. The total liabilities are ₱34,000 (Accounts Payable), and 30% of the assets were financed by Tom’s initial investment. We need to determine the total assets, owner's equity, and the remaining financing source. Using gresa method GIVEN REQUIRED EQUATION SOLUTION ANSWER the required has one and in the final answer identify if owners equity, liabilities or assets 

To solve this problem using the **GRESA method** (Given, Required, Equation, Solution, Answer), let's break it down step by step:

### 1. **GIVEN:**
   - Cash = ₱26,000
   - Supplies = ₱13,000
   - Inventory = ₱27,000
   - Liabilities (Accounts Payable) = ₱34,000
   - 30% of the assets were financed by Tom’s initial investment (Owner's Equity).

### 2. **REQUIRED:**
   - Total Assets (A)
   - Owner's Equity (OE)
   - The remaining financing source (Liabilities or other external financing).

### 3. **EQUATION:**
   - **Total Assets (A):**
     \[
     A = \text{Cash} + \text{Supplies} + \text{Inventory}
     \]
   - **Owner's Equity (OE):** 
     Since 30% of the assets were financed by the owner, we can express the owner's equity as:
     \[
     OE = 30\% \times A
     \]
   - **Total Financing Sources:**  
     Assets are financed through owner's equity and liabilities:
     \[
     A = OE + \text{Liabilities}
     \]
   This can also be rearranged as:
     \[
     OE = A - \text{Liabilities}
     \]

### 4. **SOLUTION:**

   First, calculate the **Total Assets (A):**
   \[
   A = 26,000 + 13,000 + 27,000 = 66,000
   \]

   Now, calculate **Owner's Equity (OE)** using the fact that 30% of the assets are financed by the owner's initial investment:
   \[
   OE = 30\% \times 66,000 = 0.30 \times 66,000 = 19,800
   \]

   Finally, check the total financing sources. Since liabilities are given as ₱34,000, the remaining financing source is owner's equity. Verifying with the equation:
   \[
   A = OE + \text{Liabilities}
   \]
   \[
   66,000 = 19,800 + 34,000 = 53,800
   \]
   There's a shortfall of ₱12,200, which represents additional financing (likely from other external sources).

### 5. **ANSWER:**
   - **Total Assets (A):** ₱66,000 (Asset)
   - **Owner's Equity (OE):** ₱19,800 (Equity)
   - **Liabilities:** ₱34,000 (Liability)
   - **Remaining Financing Source:** ₱12,200 (Liabilities or other external financing source)

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Let me know if you want more details or explanations! Here are 5 related questions you might want to explore:

1. How does owner's equity impact the financial stability of a company?
2. What is the relationship between assets, liabilities, and equity?
3. How can the ratio of debt to equity affect a company’s financial risk?
4. What are some common external financing sources for businesses?
5. How would an increase in assets affect the owner’s equity and liabilities?

**Tip:** Always ensure that total assets equal the sum of liabilities and owner’s equity when analyzing a balance sheet!

Tom’s Co. has ₱26,000 in Cash, ₱13,000 in Supplies, and ₱27,000 in Inventory. The total liabilities are ₱34,000 (Accounts Payable), and 30% of the assets were financed by Tom’s initial investment. We need to determine the total assets, owner's equity, and the remaining financing source. Using the GRESA method (GIVEN, REQUIRED, EQUATION, SOLUTION, ANSWER) the required has one and in the final answer identify if it's owner's equity, liabilities, or assets.

Learn how to calculate total assets, owner's equity, and liabilities for Tom’s Co. using the GRESA method. This financial accounting problem involves the accounting equation, covering key concepts like assets, liabilities, and owner's equity. Suitable for Grades 10-12 students.

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