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6 July, 07:04

A company has net working capital of $2,507, current assets of $6,650, equity of $22,530, and long-term debt of $10,640. What is the company's net fixed assets

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  1. 6 July, 09:40
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    Asset = $37,313

    Explanation:

    Fixed assets are the component of a firm's asset that is fixed during the production process. The other component of asset is the current assets, that are convertible to liquid assets that can be used in the production process.

    Net working capital = current assets - current liabilities

    Current liabilities = Current assets - Net working capital

    Current liabilities = 6,650 - 2,507 = $4,143

    Total liabilities = current liabilities + long term liabilities

    Total liabilities = 4,143 + 10,640

    Total liabilities = $14,783

    According to the accounting formula

    Asset = liabilities + owner's equity

    Asset = 14,783 + 22,530

    Asset = $37,313
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