Question

A firm has net working capital of $1,770. long-term debt is $4,180, total assets are $11,830, and fixed assets are $3,910. what is the amount of the total liabilities?

Answer 1

Net-working capital = $1,770

Long term debt = $4,180

Total Assets = $11,830

Fixed Assets = $3,910

Total liabilities Amount = ?

Total current Assets = Total Assets – Fixed Assets

$11,830 - $3,910 = $7,920

Current Assets - current liabilities = Net-working capital

Current liabilities = Current Assets - Net-working capital

=$7,920 - $1,770 = $6,150

Total liabilities = current liabilities + long term debt

=$6,150 + $4,180

=$10,330

Amount of the total liabilities is $10,330