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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
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 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 capitalStep by Step Solution
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