Ask Question
21 December, 10:32

Wims, Inc., has current assets of $4,900, net fixed assets of $27,300, current liabilities of $4,100, and long-term debt of $10,200. a. What is the value of the shareholders’ equity account for this firm? (Do not round intermediate calculations.) b. How much is net working capital? (Do not round i

+1
Answers (1)
  1. 21 December, 13:11
    0
    (a) $17,900

    (b) $800

    Explanation:

    Given that,

    Current assets = $4,900

    Net fixed assets = $27,300

    Current liabilities = $4,100

    Long-term debt = $10,200

    (a) Total assets = Current assets + Net fixed assets

    = $4,900 + $27,300

    = $32,200

    Total liabilities = Current liabilities + Long-term debt

    = $4,100 + $10,200

    = $14,300

    Equity = Total assets - Total liabilities

    = $32,200 - $14,300

    = $17,900

    Therefore, the value of shareholder's equity is $17,900.

    (b) Net working capital = Current assets - current liabilities

    = $4,900 - $4,100

    = $800
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Wims, Inc., has current assets of $4,900, net fixed assets of $27,300, current liabilities of $4,100, and long-term debt of $10,200. a. ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers