Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please see attached finance question---sample is included SAMPLE: Rose, Inc., has current assets of $6,000, net fixed assets of $23,200, current liabilities of $5,600, and

image text in transcribed

Please see attached finance question---sample is included

image text in transcribed SAMPLE: Rose, Inc., has current assets of $6,000, net fixed assets of $23,200, current liabilities of $5,600, and long-term debt of $13,600. What is the value of the shareholders' equity account for this firm? (Do not round intermediate calculations.) $ Shareholders' equity 10,000 0.1% How much is net working capital for this firm? (Do not round intermediate calculations.) $ Net working capital 400 1% Explanation: To find owners' equity, we must construct a balance sheet as follows: Balance Sheet C A N FA T A $ 6,000 23,200 $ 29,200 CL $ LT D O E TL & O E 5,600 13,600 ?? $ 29,200 We know that total liabilities and owners' equity (TL & OE) must equal total assets of $29,200. We also know that TL & OE is equal to current liabilities plus long-term debt plus owners' equity, so owners' equity is: Owners' equity = $29,200 - 13,600 - 5,600 Owners' equity = $10,000 And net working capital is: NWC = CA - CL NWC = $6,000 - 5,600 NWC = $400 MY ACTUAL QUESTION: Rose, Inc., has current assets of $4,000, net fixed assets of $23,100, current liabilities of $2,500, and long-term debt of $12,400. What is the value of the shareholders' equity account for this firm? (Do not round intermediate calculations.) $ Shareholders' equity How much is net working capital for this firm? (Do not round intermediate calculations.) $ Net working capital

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Business The Challenges Of Globalization

Authors: John J. Wild, Kenneth L. Wild

9th Edition

0134729226, 978-0134729220

More Books

Students also viewed these Finance questions

Question

Critically evaluate the counter-arguments to CSR.

Answered: 1 week ago