Hi @Frank7717. You may find the following useful...
Shareholder's equity = total assets - total liabilities.
Equity is also used to calculate financial ratios such as return on equity (ROE).
An increase in sales revenue once it hits the company bank account is an example of an increase in current assets. The value of equity increases when a business generates more profits from increase in sales revenue or the owner (or owners in a joint partnership) contribute more capital.
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