Bear Tracks, Inc., has current assets of $2,250, net fixed assets of $10,100, current liabilities of $1,390, and long-term debt of $4,060. What is the value of the shareholders' equity account for this firm? How much is the company's net working capital?

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13 September, 05:51

Bear Tracks, Inc., has current assets of $2,250, net fixed assets of $10,100, current liabilities of $1,390, and long-term debt of $4,060. What is the value of the shareholders' equity account for this firm? How much is the company's net working capital?

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Madden Rodriguez · Answer 1

The shareholders' equity account for this firm is $6,900.

The company's net working capital is $860

Explanation:

The accounting equation shows the relationship between the various elements of the balance sheet. These are the assets, liabilities and equity. the equation is given as

Assets = Liabilities + Equity

where assets and liabilities are the totals of the current and non current.

Working capital is the difference between a company's current asset and its current liabilities.

Given,

current assets = $2,250,

net fixed assets = $10,100,

current liabilities = $1,390, and

long-term debt = $4,060

The shareholders' equity account for this firm

= $2,250 + $10,100 - $1,390 - $4,060

= $6,900

The company's net working capital

= $2,250 - $1,390

= $860