Question

Bear tracks, inc., has current assets of $2,180, net fixed assets of $9,400, current liabilities of $1,355, and long-term debt of $3,990. What is the value of the shareholders' equity account for this firm? (do not round intermediate calculations and round your answer to the nearest whole number,
e.G., 32.) shareholders' equity $ 6235 how much is the company's net working capital? (do not round intermediate calculations and round your answer to the nearest whole number,
e.G., 32.) net working capital $ 825 hintsreferencesebook & resources hint #1

Answer 1

(a) Total assets = Current assets + Fixed assets  

Total assets = 2180 +9400 = 11,580

Total liabilities = Current liabilities + long term debt

Total liabilities = 1355+3990 = 5,345

According t the accounting equation, Stockholders equity = Total assets - Total liabilities =  11,580-5,345 = 6,235

Stockholders equity = $6,235

(b) Working capital = Current assets - Current liabilities

Working Capital = 2180-1355

Working Capital = $825