Question

building a balance sheet,ABCO,onc.had current assets of 15,200, net fixed assets $4,999, current liabilities of $6,600, and long-term debt of $10,000. what is the vaue of the shareholders equity ? how much is net working capital? show your balance sheet

Answer 1

First we will calculate total assets as per below:

Total assets = Current assets + Net fixed assets

Total assets = $15200 + $4999 = $20199

Now, we will calculate shareholder's equity by the following equation,

Total assets = Current liabilities + Long term debt + Shareholder's equity

Putting the values in the above equation, we get,

$20199 = $6600 + $10000 + Shareholder's equity

$20199 = $16600 + Shareholder's equity

Shareholder's equity = $20199 - $16600

Shareholder's equity = $3599

Net working capital = Current assets - Current liabilities

Net working capital = $15200 - $6600 = $8600

Balance sheet:

Liabilities & Equity	Amount	Assets	Amount
Current liabilities	$6600	Current assets	$15200
Long term debt	$10000	Net fixed assets	$4999
Shareholder's equity	$3599
Total liabilities & equity	$20199	Total assets	$20199