Answer:
Willowa Inc.
a. Willowa's accounting equation (assets = liabilities + equity)
= $220 + $320 + $130 = $160 + $380 + $130
b. Working capital = Current assets - current liabilities
= $60 million ($220 - $160 million)
c. Willowa owes $540 million to creditors.
d. The company's assets owed by Willowa's stockholders = $130 million.
Explanation:
a) Data and Calculations:
Current assets = $220 million
Property, plant, equipment = $320 million
Other assets = $130 million
Total assets = $670 million
Current liabilities = $160 million
Long-term liabilities = $380 millon
Total liabilities = $540 million
Equity = Total assets - total liabilities
= $130 ($670 - $540) million
