Question

(Working with the balance​ sheet) The Caraway Seed Company grows heirloom tomatoes and sells their seeds. The heirloom tomato plants are preferred by many growers for their superior flavor. At the end of the most recent year the firm had current assets of $ 48 comma 800​, net fixed assets of $ 248 comma 800​, current liabilities of $ 28 comma 500​, and​ long-term debt of $ 98 comma 200. a. Calculate​ Caraway's stockholders' equity. b. What is the​ firm's net working​ capital? c. If​ Caraway's current liabilities consist of $ 18 comma 500 in accounts payable and $ 10 comma 000 in​ short-term debt​ (notes payable), what is the​ firm's net working​ capital? a. Calculate​ Caraway's stockholders' equity.

Answer 1

Answer:

A. $170,900

B. $20,300

C. $ 19,800

Explanation:

A. Accounting Equation ;

Assets = Equity + Liabilities

Therefore  Equity = Assets - Liabilities

Total Assets - Caraway Seed Company

Current assets                 $ 48,800​

Net fixed assets             $ 248,800

Total Assets                   $ 297,600

Total Liabilities - Caraway Seed Company

current liabilities   $ 28,500​

long-term debt     $ 98,200

Total                      $126,700

Equity = $ 297,600 -  $126,700 = $170,900

B. Net working​ capital = Current Assets - Current liabilities

                                 =  $ 48,800​ - $ 28,500​

                                 =  $20,300

C. Net working​ capital = Current Assets - Current liabilities

                                     = $ 48,800 - ( $18,500 + 10,500)

                                     = $ 19,800