Shareholders’ equity consists of the value of stocks, any additional paid-in capital, and retained earnings, which are carried over from net income on the balance sheet. If a company overstates ...

The balance sheet shows current and total assets ... aiding another year of equity gains for shareholders.

This will be the last line on the income statement. Next, move over to the balance sheet to calculate shareholders' equity, which is total assets minus total liabilities. Then all you need to do ...