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LenaWriter [7]
3 years ago
14

Cori's Corp. has an equity value of $13,505. Long-term debt is $8,800. Net working capital, other than cash, is $3,620. Fixed as

sets are $17,980 and current liabilities are $1,870.
How much cash does the company have?
Cash ________________$
What is the value of the current assets?
Current assets ______________$
Business
1 answer:
ruslelena [56]3 years ago
5 0

Answer:

Cash $705

Current Assets $6,195

Explanation:

Equity $13,505

Long-term debt $8,800

Net working capital, other than cash, $3,620.

Fixed assets are $17,980

Current liabilities are $1,870.

Net Working capital is the Net value of Current and Current Liabilities.

We need to calculate current assets with cash first.

As we know

Assets = Equity + Liability

Fixed Assets + Current Assets = Equity + Long Term Liability + Current Liability

$17,980 + Current Assets = $13,505 + $8,800 + $1,870

Current Assets = $24,175 - $17,980 = $6,195

Net Working Capital  = Current Assets - Current Liabilities

$3,620 = Current Assets - $1,870

Current Assetsother than cash = $3,620 + $1,870

Current Assets other than cash = $5,490

Cash Value = Total Current Assets - Current Assets other than cash = $6,195 - $5,490 = $705

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The Journal entries are as follows:

(1)

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