Question

A company has total equity of $1,965, net working capital of $175, long-term debt of $940, and current liabilities of $1,770. What is the company's net fixed assets?

Answer 1

Answer:

The net fixed assets is $2,730

Explanation:

The computation of the net fixed asset is shown below:

= Total equity + long term debt + current liabilities - (net working capital + current liabilities)

= $1,965 + $940 + $1,770 - ($175 + $1,770)

= $2,730

hence, the net fixed assets is $2,730

We simply applied the above formula and the same is to be considered