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inessss [21]
3 years ago
5

Four years ago, Ship Express purchased a mailing machine at a cost of $218,000. This equipment is currently valued at $97,400 on

today's balance sheet but could actually be sold for $92,900. This is the only fixed asset the firm owns. Net working capital is $41,300 and long-term debt is $102,800. What is the book value of shareholders' equity?
Business
2 answers:
oksian1 [2.3K]3 years ago
8 0

Answer:

45,800

Explanation:

Four years ago, Ship Express purchased a mailing machine at a cost of $218,000. This equipment is currently valued at $97,400 on today's balance sheet but could actually be sold for $92,900. This is the only fixed asset the firm owns. Net working capital is $41,300 and long-term debt is $102,800. Therefore, the book value of shareholders' equity is 45,800.

deff fn [24]3 years ago
3 0

Answer:

equity = 45,800

Explanation:

working capital:  current assets - current liaiblities = 41,300

net book value of long term assets: 97,400

long term debt 102,800

we will work with the accounting formula to solve for equity:

assets = liaibltiies + equity

we divide assets and liabilities in current and non-current:

current assets + long term assets = current liabilities + long-term debt + equity

we rearrenge the formula in order to sovle for equity:

(currnet asets - current liabilities) + long term assets - long-term debt  = equity

41,300 + 97,400 - 92,900 = equity

equity = 45,800

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Complete Question:

What is the relationship between the Securities and Exchange Commission and accounting standard setting in the United States?

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B) The SEC coordinates with the AICPA in establishing accounting standards.

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Answer:

C) The SEC has a mandate to establish accounting standards for enterprises under its jurisdiction.

Explanation:

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GAAP is an acronym for Generally Accepted Accounting Principles, it comprises of the accounting standard, procedures and principles used by public institutions in the United States of America. The U.S GAAP is issued by the Financial Accounting Standards Board (FASB) and adopted by the U.S. Securities and Exchange Commission (SEC).

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3 years ago
MicroTech Corporation maintains a capital structure of 40 percent debt and 60 percent common equity. To finance its capital budg
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Answer:

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Explanation:

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5 0
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Forms of Business Organization
chubhunter [2.5K]

Answer:

<h2>Forms of Business Organization </h2>

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