Wims, Inc., has current assets of $4,900, net fixed assets of $27,300, current liabilities of $4,100, and long-term debt of $10,200.

a. What is the value of the shareholders’ equity account for this firm?
b. How much is net working capital?

Respuesta :

Answer:

(a) $17,900

(b) $800

Explanation:

Given that,

Current assets = $4,900

Net fixed assets = $27,300

Current liabilities = $4,100

Long-term debt = $10,200

(a) Total assets = Current assets + Net fixed assets

                    = $4,900 + $27,300

                    = $32,200

Total liabilities = Current liabilities + Long-term debt

                        = $4,100 + $10,200

                        = $14,300

value of the shareholders’ equity:

= Total assets - Total liabilities

= $32,200 - $14,300

= $17,900

(b) Net working capital:

= Current assets - Current liabilities

= $4,900 - $4,100

= $800