Based on the information, calculate the Shareholder’s equity of the company. How to calculate owner’s equity. Assets go on one side, liabilities plus equity go on the other. 3 Calculate the Cost of Goods Sold and Ending Inventory Using the Perpetual Method;. Uses → Dividends, Share Buybacks (Repurchases) On the other hand, the cash flow statement is more about tracking the movement of a. Total Assets = 18250000. Calculate the ending equity. What does this number say about the Widget Workshop? The owners of the Widget Workshop are seen as running their business conservatively. CFA Calculator & others. " It can be found on a firm's balance sheet and financial statements. What is Equity Value? The Equity Value is the total value of a company’s stock issuances attributable to only common shareholders, as of the latest market close. Capital minus Retained Earnings b. Owner’s Equity. g. Calculate owner equity (E) b. Owner's equity is an owner's ownership in the business, that is, the value of the business assets owned by the business owner. Example Interiors' owner's equity value thus stands at $1. Now, you invested $10,000 from your pocket. Net income this year was $350,000, and owners. Owner’s equity is the value of a business that the owner can claim, and it consists of the firm’s total assets minus its total liabilities. Calculating owner’s equity is easy to calculate in most cases. Home equity is the portion of your home you’ve paid off. It moves up and down over time as the business invoices customers, banks profits, buys assets, takes loans, runs up bills, and so on. Owner's equity is viewed as a residual claim on the business assets because liabilities have a higher claim. A is the total assets owned by the shareholders. The first is paid-in capital or contributed capital—consisting of amounts paid in by owners. LO 2. For example, if a company's goods are valued at $750,000 and their total liabilities are $350,000, the owner’s equity is $400,000. Step 3: Next, determine the value of additional. Here are some examples that can help you better understand owner's equity in action: Example 1: If you own a car worth $20,000 but you owe $5,000 against it, your owner's equity is $15,000. Total assets also equals to the sum of total liabilities and total shareholder funds. For example, an owner may contribute $100 of cash and a machine that costs $200 for his product’s manufacturing. Owner’s Equity = 1/3*Assets=1/3 *A. The equity and leverage calculator makes some underlying assumptions: That the property you are leveraging is an owner-occupier home, rather than an investment property. Negative Equity occurs when the total value of liabilities exceeds the total value of assets. An owner needs to calculate their adjusted basis, by starting with the value. It can also be computed by combining current and noncurrent assets. A ratio of 1 would imply that creditors and investors are on equal footing in. Here is an example of how to decide one of the components if it is unknown, Example: Let’s assume that the net income for the year 2018 is unknown, but the amount of the draws and the beginning and ending balances of owner’s equity are known, you can calculate the net income. Where: Net Income – Net earnings remaining after deducting all costs, including line items (where applicable) such as taxes, interest, depreciation, and amortization. It is also a financial ratio that establishes how much of the owner’s investment funds the company’s acquisitions. Calculate the rate of return on farm equity (ROFE) and the cost of farm debt (COFD) d. The higher the number, the higher the leverage. Our free startup equity calculator can help you understand the potential financial outcome of your offer. The formula to calculate the return on equity (ROE) is as follows. The expanded accounting equation breaks down shareholder’s equity (otherwise known as owners’ equity) into more depth than the fundamental accounting equation. It can be calculated by using the accounting formula of net assets minus net liabilities is equal to owner’s equity. The resulting figures will reflect each of the owner’s equity in the business. Return on equity (ROE) is a metric for the annual percentage return earned on shareholders’ equity. TD Bank. To calculate the debt-to-equity ratio: $5,000 / $2,000 = 2. =. Shareholder’s equity is a firm’s total assets minus its total liabilities. The equity ratio highlights two important financial concepts of a solvent and sustainable business. Take the first step in leveraging your home's financial potential. By inputting your total equity and total liabilities, you can quickly assess the value of your ownership stake in the company. This figure would be visible in some of the financial statements of the firm. This equation makes owner’s equity seem like a leftover…what remains after the company’s liabilities (what the company owes to others in the form of loans and accounts payable) are subtracted from its assets (what the company holds in its checking account, what is owed to the company via accounts. 10,00,000. Step 2: Finally, we calculate equity by deducting the total liabilities from the total assets. If you are the only member, you have 100% of the ownership. You can calculate it using the owner's capital, the profits generated and the owner's draw. It can be represented with the accounting equation : Assets -Liabilities = Equity. These include: A profit or loss; Distribution to shareholders through cash dividends; Raising new equity capital such as issuing shares or purchasing treasury stock; Example 2: A company had total revenues amounting to $800,000. gatsby-image-wrapper noscript [data-main-image]{opacity:1!important}. accounting. The formula to calculate it is to divide Net Income by Average Shareholder’s Equity. 2 million in assets but owes $485,000 on a term loan and $120,000 for a semi-truck it. LO 2. It is the net worth of a company and can also be called "owners' equity" or "shareholders' equity. Add. It reports any changes to the company’s equity, including earned profits, dividends, inflow of equity, withdrawal of equity, and net loss. The concept is most useful when measuring the return on investment in a period in which a business has sold a large amount of stock. For example, an owner may contribute $100 of cash and a machine that costs $200 for his product’s manufacturing. If assets are $205,000 and owner's equity is $75,000, what is the amount of the liabilities? If assets are $294,000 and owner's equity is $149,000, the amount of the liabilities is _____. The debt-to-equity ratio for Hasty Hare is: ($110,000 + $12,000 + $175,000)/$415,000 = 0. Shareholders Equity = Total Assets – Total Liabilities. Owner’s Equity = 36,57,25,000 + 25,85,78,000; Owner’s Equity = 10,71,47,000 Owner’s equity is 10,71,47,000 Explanation. Treasury stock. If your assets increase, so does your. LO 2. It moves up and down over time as the business invoices customers, banks profits, buys assets, takes loans, runs up bills, and so on. In this equation, the owner’s equity is defined as the sum total of business capital and the earnings retained after paying all the liabilities. Assets = $ 15,000 + $ 17,000 + $ 12,000 + $ 17,000 + $ 20,000+ $ 5,000+ $ 19,000 = $ 105,000; Liabilities = $ 12,000 + $ 3,500 +$. Owner's equity examples. The calculator estimates how much you'll pay for PMI, which. And it occurs when the number of assets owned is insufficient for securing a loan concerning the outstanding balance left on the loan. 80 this year. This is a comprehensive tutorial on Return on Owners Equity. Assets, Liabilities, Owner's Equity, Revenues, Expenses, Gains, Losses Financial Statements Overview Accounting Equation Assets = Liabilities + Equity Equity = Assets - Liabilities ---> Assets = Liabilities + Equity [Example] Company A has $800,000 liabilities and $1,200,000 equity. However, nowadays, corporates also. Comment on the year-to-year changes in the accounts and possible sources and uses of funds (how were. This is direct capital invested by owners during a previous accounting period. Let’s take the equation we used above to calculate a company’s equity: Assets – Liabilities = Equity. Liabilities: Definitions and Differences. In this ratio, the word “total” means exactly that, and ALL assets and equity reported on a company’s balance sheet must be included. The simplest way to calculate owner’s equity is to. (Getty Images) Return on equity, or ROE, is a measure of how efficiently a company is using shareholders' money. Total Owners’ Equity: This figure represents the residual. Even The mini Tools Can Empower People to Do Great Things. To find stockholders’ equity, you’d just do some simple math: $5,300,000 in total assets – $3,400,000 in total liabilities = $1. Instructions 4. It moves up and down over time as the business invoices customers, banks profits, buys assets, takes loans, runs up bills, and so on. You can use it to borrow for other financial goals. In that case, the company’s assets would be worth $300, and the equity would be $300 as. By inputting your total equity and total liabilities, you can quickly assess the value of your ownership stake in the company. Let’s take an example in which the capital available to a company at the beginning of a new financial year is $500,000. 8 Statement of Owner’s Equity for Cheesy Chuck’s Classic Corn. Assets – Liabilities = Owner’s Equity If dollar amounts of any two of the three elements are known, we can solve the equation to find the third one. )To calculate your net worth, take inventory of what you own, as well as your outstanding debt. Liabilities: money that the company owes to others (e. In other words it is the real property’s current market value less any liens that are attached to that property. If you want to record any investments added to the business, you just need to categorize the transaction associated with your deposits. Here’s what the co-founder equity split tool looks like in action:Use the accounting equation to calculate the value of liabilities if assets are $50,000 and owners' equity is $25,000. To calculate your debt ratio, divide your liabilities ($150,000) by your total assets ($600,000). Can you think of another way to confirm the amount of owner’s equity? Recall that equity is also called net assets (assets minus. This calculator can also determine the assets or liabilities when given the other variables. Owner’s equity is a key variable in the classic accounting equation, Assets = Liabilities + Owner’s Equity, by which a company’s balance sheet literally “balances. That’s compared with $38,948 in December 2019, before the. To calculate owner’s equity, first add the value of all the business’s assets, which include real estate, equipment, inventory, retained earnings and capital goods, the Corporate Finance Institute notes. 32 = 132%. Owner's Equity Calculator. Return on equity is a percentage measure of the return received on a real estate investment property as related to the equity in the property. The cost of items sold is subtracted from the organization’s revenue for a given duration to calculate the net income. In the below-given figure, we have shown the calculation of the balance sheet. To begin with, these tools track all the inflow and outflow of cash in your company through. How To Calculate Owner's Equity or Retained Earnings . Calculate ROE as net income divided by average shareholders’ equity. started the business one year back, and at the end of the financial year ending 2018, owned land worth $ 30,000, a building worth $ 15,000, equipment worth $ 10,000, inventory worth $5,000, debtors Debtors A debtor is a borrower who is liable to pay a certain sum to a credit supplier such as a bank, credit card. Both input values are in the relevant currency while the result is a ratio. We get the conclusion from a website: ROE and ASE The average shareholders' equity calculation is the beginning shareholders' equity plus the ending shareholders' equity, divided by two. To calculate shareholders equity, subtract the total liabilities owned by shareholders from the total assets. You have calculated these balances in tutorial 8. If you already know your total equity and assets, you can also use this information to calculate liabilities: Assets – Equity = Liabilities. Other examples of owner's equity are proceeds from the sale of stock, returns from. Shareholders equity can also be calculated by the components of owner’s equity. 1Each situation below relates to an independent company’s owners’ equity. The formula to calculate it is to divide Net Income by the Average Shareholder’s Equity. The simplest way to calculate owner’s equity is to subtract liabilities from assets. Preferred stock Treasury stock Additional paid-in capital Is owner’s equity an asset? Business owners may think of owner’s equity as an asset, but it’s not shown as an asset on the balance sheet of the. This equity ratio calculator estimates the proportion of owner’s/shareholder’s equity against the total assets of a company, showing its long term solvency position. Therefore, the company’s common equity is $8,900,000 as of the balance sheet date. Both input values are in the relevant currency while the result is a ratio. The Calculator. Company B ROE. The second is the retained earnings. Selected accounts from the ledger of Serenity Systems Co. XY Manufacturing has the following alphabetized balance sheet entries from the year 2013. There are two shareholder's equity formulas that you can use: Formula 1: Shareholders' Equity = Total Assets – Total Liabilities. A balance sheet generated by accounting software makes it easy to see if everything balances. Owners Capital = Total Assets – Total Liabilities. These changes are reported in your statement of changes in equity. Principles of Accounting Volume 1. It may look easy to calculate, but it plays a vital role in determining a company’s financial leverage and stability. To determine the amount of equity you could potentially have for investors, identify the totals for assets and liabilities. Assume your home’s current value is $410,000, and you have a $220,000 balance remaining on your mortgage. Equity refers to the total funds a company is left with after it sells all its assets and pays all its liabilities. Example of owner's equity for businesses. Equity ratio is a financial metric that measures the amount of leverage used by a company. The stockholders’ equity section of the balance sheet for corporations contains two primary categories of accounts. In most cases, you can borrow up to 80% of your home’s value in total. Calculate accounting ratios and equations. Calculate how many shares you want to give to your team. Finally, calculate the closing balance of equity. The statement of owner’s equity is a financial statement reporting changes in the equity section of the balance sheet. 1 day ago · Spring EQ. It can be represented with the accounting equation : Assets -Liabilities = Equity. The first component shows how much of the total. Owns property worth $500,000, plant and equipment of $250,000,. How to calculate owner’s equity. Capital minus Retained. For example, if you have $100,000 in assets and $40,000 in liabilities, your. com Below is the accounting formula used to find owner’s equity: Equity = Assets - Liabilities Your company’s assets minus any liabilities are equivalent to the total equity of your company, also known as net worth. Example: If a company's total liabilities are $ 10,000,000 and its shareholders' equity is $ 8,000,000, the debt-to-equity ratio is calculated as follows: 10,000,000 / 8,000,000 = 1. And the double-entry accounting system is. Examples of liabilities include customer deposits, salaries payable, or accounts payable, or interest. The contribution increases the owner's equity interest in the business. Equity and Investment Calculator. Serenity Systems Co. Shareholders equity can also be calculated by the components of owner’s equity. Because the Alphabet, Inc. To calculate the owner’s equity and create a balance sheet, he arranged the following data related to his proprietorship firm, Marvels Enterprises:-. It is calculated by subtracting total liabilities from total assets. Generally, equity begins with the original contribution to the organisation by way of assets such as cash or assets used within the business. Shareholders’ Equity = $61,927 – $43,511. -If a sole proprietor earns $30,000 in one year and spends $28,000 on business expenses, then the owner’s equity at the end of the year would be $2,000. e. Solution: Step 1. Examples of liabilities include accounts payable, long-term debt, short-term debt, capital lease obligation, other current. This process involves three steps. 8 million. Owner’s Equity = Total Assets – Total Liabilities. ”. Business. This formula represents the basic accounting equation: Assets = Liabilities + Owner’s equity. This will give you your equity stake in the business. Given, Paid-in share capital = $50,000; Retained earnings = $120,000; Treasury stock = $30,000;See Answer. Shareholder’s Equity is the ownership of assets each shareholder claims after deducing total liabilities from total assets. Equity Turnover = $100 million ÷ $20 million = 5. *Maximum HELOC Amount is up to 65% of home's market value. $25,000 d. Calculate the owner's total assets. Share issued will increase owners equity by 1,00,000 (1,000 x 100) and issued capital over par by $20,000 (1,000 x 20) 3. Retained. Equity = Assets – Liabilities. 42. In this case, we can calculate return on equity by using the net profit in 2019 and the average return on equity figure as below: Return on Equity = 15,360 / 102,252 = 15. There are two main types of business equity value relevant to small-business owners. Suppose you have just started a new of selling cupcakes. For this example, Company XYZ’s total assets (current and non-current) are valued $50,000, and its total shareholder (or owner) equity amount is $22,000. Formula: Debt to Equity Ratio = Total Liabilities / Shareholders' Equity. The expanded accounting equation allows you to see separately (1) the impact on equity from net income (increased by revenues, decreased by expenses), and (2) the effect of transactions with. Owner's Equity: Common Stock ($1 par) Retained Earnings: Accum Other Income: Total Owner's Equity: Total Liabilities and Owner's Equity: Income Statement. It’s what’s left over for the owner after you’ve subtracted all the liabilities from the assets. Download our startup equity calculator. Equity is owner’s value in assets or group of assets. If Assets = $780 and Liabilities = $560, Owner's Equity = $780 - $560 = $220. The total shareholders’ equity for the company is $18,416 million. Related: Assets vs. Tammy also had 10,000, $5 par common shares outstanding during the year. By inputting your total equity and total liabilities, you can quickly assess the value of your ownership stake in the company. In accounting, the company’s total equity value is the sum of owners equity—the value of the assets contributed by the owner(s)—and the total income that the company earns and retains. ” Label the amount you come up with as. To get a percentage result simply multiply the ratio by 100. It is also known as share capital, and it has two components. First, Wyatt could calculate his gross income by taking his total revenues, and subtracting COGS: Gross income = $60,000 - $20,000 = $40,000. Owners’ Equity: The company’s ownership interests in its property after all debts have been repaid. Accounting Equation: The equation that is the foundation of double entry accounting. 1 For each independent situation below, calculate the missing values for owner’s equity. Identify the given information: total assets = $600,000. Total liabilities, meanwhile, come to $3. The formula for owner’s equity is: Owner’s Equity = Assets – Liabilities. The formula for calculating the owner’s equity is simple: Assets – Liabilities = Owner’s Equity. Think of owner's equity in the context of owning a house. Again, your assets should equal liabilities plus equity. and the second part of the formula is. 22). Comment 1. This value. 1. Formula. Total owner's equity: Stockholders' equity: Embed Equity Ratio. You need to list down all of the company’s equity accounts including common stocks, retained earnings, and treasury stock. Here, Net Income is the total profit generated by a company in a given financial year. Half Moon Realty Balance Sheet July 31, 20Y2 Assets Cash Accounts Receivable Supplies Total Assets Liabilities Accounts Payable Owner's Equity Owner, capital Total liabilities and Owner's Equity Half Moon Realty Statement of Cash Flows For the Month Ended July 31, 20Y7 Cash flows from (used for) operating activities: Cash received from customers $. Comment on the year-to-year changes in the accounts and possible sources and uses of funds (how were the. For example, if the total assets of a business are worth $50,000 and its liabilities are $20,000, the owner’s equity in that business is $30,000, which is the difference between the two amounts. A following steps must be followed –. The book value of equity is calculated as the difference between assets and liabilities on the company’s balance sheet, while the market value of equity is based on the current share price (if public) or a value that is determined by investors or valuation. 7, or 70:100, or 70%. In most cases, you can borrow up to 80% of your home’s value in total. Kim Peters started Valley Dental. ROE = Net Income / Total Equity. The equity ratio is the solvency ratio. Owner’s equity. Borrowers with lower credit scores pay more for PMI than borrowers with higher credit scores. Owners Equity(O. This also happens when the capital input increases. Return on Equity (ROE) = Net Income ÷ Average Shareholders’ Equity. = $18,884. which says T. The owner's equity at December 31, 2022 can be computed as well: Step 3. Some accountants also choose to call this the net worth or net assets of the company. The resulting figures will reflect each of the owner’s equity in the business. A statement of owner’s equity covers the increases and decreases within the company’s worth. Keeping an eye on your total liabilities and equity position is an important responsibility for a small business owner. 5The average shareholders’ equity between 2020 and 2021 is $20 million. Equity Calculator (Accounting) Equity is owner’s value in assets or group of assets. = $1,000,000 - $500,000. You can do so by subtracting the value of your liabilities from the value of your equity. The value of Midway Paper is $150,000. The stockholders’ equity section of the balance sheet for corporations contains two primary categories of accounts. Divide the total business equity by the percentage each owner owns. Owner’s Equity in Balance Sheet. Analysts also use this ratio to understand the company’s. These changes are reported in your statement of changes in equity. The asset to equity ratio compares the total assets of a company to its shareholder’s equity. Advertising & Editorial Disclosure. Question 3: Calculate the company’s debt ratio and debt to equity ratio. This is a comfortable, strong financial position. Market value of equity is calculated by multiplying the company's current stock price by its. Where equity is the owner’s fund of a company, such as capital or shareholders fund, and liability is the company’s debts that need to be paid off, such as loans, operation expenses, salaries. Use this simple home equity calculator to estimate how much equity you have in your home and how much of it a lender might allow you to borrow. Based on the above formula, calculation of Book value of Equity of RSZ Ltd can be done as, = $5,000,000 + $200,000 + $3,000,000 + $700,000. A statement of owner's equity is a one-page report showing the difference between total assets and total liabilities, resulting in the overall value of owner's equity. Enter the total assets and total liabilities of the owner into the calculator. Owner’s equity is the proportion of the total value of a company’s assets that can be claimed by the owner. Of course, the tricky part is figuring out what counts as an asset and what. Equity represents the ownership of the firm. $400,000. a second mortgage ), your HELOC limit may be different from the above calculations. Assets: $1,200. Building equity through your monthly principal payments and. Owner's equity = $210,000 - $60,000 = $150,000. Step 2: Finally, we calculate equity by deducting the total liabilities from the total assets. Your calculation would look like this: $410,000 – $220,000 = $190,000. Technically, the owner's equity closing balances must tally with the equity accounts of the firm. Preferred stock Treasury stock Additional paid-in capital Is owner’s equity an asset? Business owners may think of owner’s equity as an asset, but it’s not shown as an asset on the balance sheet of the company. The equity ratio that results is $200,000 / $500,000 = 0. Divide the total business equity by the percentage each owner owns. We can calculate, or at least estimate, two parts of total owner equity and the third part is calculated as the diferf ence Once a measur. Owner’s equity is tracked on the balance sheet and is a product of your assets minus your liabilities. 2 million in assets but owes $485,000 on a term loan and $120,000 for a semi-truck it. How to Calculate Owner’s Equity. Total Equity. for the fiscal year ended December 31, 20Y1, are as follows: Farhan Wasti, Capital Farhan Wasti, Drawing Dec. Here's how to calculate shareholder equity step-by-step: First, determine the company's total assets on the balance sheet for a given period, such as one fiscal year. What is the absolute return to assets (R) and the. A group of three partners, on the other hand, will divvy up the $250m three ways. Your calculation. The two sides must balance—hence the name “balance sheet. When this happens, the owner’s equity becomes positive. — Getty Images/Ippei Naoi. HELOC Calculator: Find Out How Much You Can Borrow, Your Estimated Monthly Payment and LTV Ratio. Stock dividend. Home equity. A company had a beginning equity of $75,000; revenues of $99,000, expenses of $68,000, and withdrawals by owners of $9,300. You can calculate it by deducting all liabilities from the total value of an asset: (Equity = Assets – Liabilities). Owners Equity : 0. 8. Total assets include all of the resources that the business owns, such as cash, inventory, property, and equipment. Negative equity and insolvency are two different concepts since the latter states. This calculation indicates that the owners of the company have a residual claim of $500,000 on the company's. Step #3: Understand how owner’s equity factors into your decision “ Owner’s equity ” is a term you’ll hear frequently when considering whether to take a salary or a draw from your business. Remember the accounting equation: DEBIT SIDE. Stockholders’ equity, also referred to as shareholders’ equity, is the remaining amount of assets available to shareholders after all liabilities have been paid. e. Owner's equity is an owner's ownership in the business, that is, the value of the business assets owned by the business owner. And turn it into the following: Assets = Liabilities + Equity. The shareholders’ equity consists of four sub-components, namely common shares, preferred shares, contributed capital and retained earnings, as follows: We then obtain the return on equity ratio by dividing EAT ($50,000) by shareholder equity (i. Using the formula from above (home value) – (principal owed) = (home equity) you would have $149,771 in equity. Owner’s Equity = Total Assets – Total Liabilities. The total liabilities have a higher value than total assets, so the answer is. offers its services to residents in the Minneapolis area. Revenue or Income: money the company earns from its sales of products or services, and interest and dividends earned from marketable. Assets will include the inventory, equipment, property, equipment and capital goods owned by the business, as well as. It represents how much of the company the owner retains after all liabilities are subtracted from its assets. Total Equity = $27,300,300 - $29,450,600. Equity Value Calculator. How To Calculate Owner's Equity or Retained Earnings . It can be cross-checked with total assets less total liabilities as of the said date. Creating this statement relies on the accurate recording and analysis of your company’s balance sheets. The following formula can be used to calculate a total equity. Instructions. Total Debt: It includes all of a company’s long-term liabilities (debts that have maturities of more than one year), short-term liabilities (debts due within a year), and any interest-bearing borrowings. The accounting equation displays that all assets are either financed by borrowing money or paying with the. It can be calculated on the first year's ownership based on the cash invested divided into the cash return from rents, etc. The owner's draw is a key aspect for ensuring that he has a cash flow for his operational. Mr. Chapter 2: The Balance Sheet. 3. The last variable in the accounting formula is owner’s equity. It can also be calculated in subsequent years, based on the projected value of. The owner's equity is the financial position of the owner. For example, XYZ Inc. Only sole proprietor businesses use the term "owner's equity," because there is only one owner. Total assets = $500,000. This is one of the four main accounting. The effect of this advertising transaction on the accounting equation is: Since ASC is paying $600, its assets decrease. Calculation of Balance sheet, i. Knowing this, you probably won't have any problems with a derivation of the return on equity formula: ROE = (net profit. Its debt-to-equity ratio is therefore 0. If the company is a partnership, you might refer to the ownership. Company XYZ’s total assets (current and non-current) are valued $50,000, and its total shareholder (or owner) equity amount is $22,000. Owner’s equity is recorded in the balance sheet at the end of an accounting period. This Pennsylvania-based lender came on strong, doing $1. Even though shareholder’s equity should be stated on a. Calculate the equity of individual owners. Chapter 2: The Balance Sheet. The stockholders’ equity section of the balance sheet for corporations contains two primary categories of accounts. Aim for: A high return on equity as this indicates your business can generate cash internally. Company B has shareholders’ equity of $40 million and net income of $8 million. 2 = 20%.