Answer: The company's total debt is $1,050,000
Explanation: The balance sheet has two sides, assets and (equity + liabilities). Both the sides are always equal. Since we have total assets given as $2,600,000 so the liabilities + equity should also be equal to $2,600,000.
The Total assets = $2,600,000
Total common Equity = $1,550,000
Total Liabilities = ?
Total Liabilities = Total Assets - Total Common Equity ,
By input the variables in the above formula,
Total Liabilities = $2,600,000 - $1,550,000
Total Liabilities = $1,050,000.
Therefore, the total debt of Dallas and Associates is $1,050,000