Determine the cash balance given the following: Total assets are $10,000, total liabilities are $10,000, and total capital is $5,000.

Explanation

To find the cash amount, we use the accounting equation: Assets = Liabilities + Equity (Capital). Given total assets of $10,000, liabilities of $10,000, and capital of $5,000, the equation does not balance as stated. However, assuming capital represents equity, cash is part of assets and can be calculated accordingly. Since total liabilities equal total assets, the net capital must be $0 for the equation to balance, but here capital is $5,000, indicating cash equals $5,000. Therefore, the correct cash amount is $5,000.