Question

Sankey. Inc., has current assets of $5,125. net fixed assets of $25,600, current liabilities of $4,500, and long-term debt of $9,900. (Do not round intermediate calculations.)
1. What is the value of the shareholders' equity account for this firm?
2. How much is net working capital?

Answer 1

Answer:

$16325

$625

Explanation:

Shareholders equity = total assets - total liabilities

Total assets = current assets + net fixed assets

$5125 + $25,600 = $30,725

total liabilities = current liabilities +  long-term debt

$4500+ $9900 = $14400

Shareholders equity = $30,725 - $14400 = $16325

Net working capital = current asset -  current liability

$5,125 - $4,500 = $625