Question

Wims, inc., has current assets of $6,000, net fixed assets of $25,100, current liabilities of $4,950, and long-term debt of $12,000.

a. What is the value of the shareholders' eq

Answer 1

Total assets = Current assets + Fixed Assets

Total assets = 6000+25100

Total assets = 31,100

Total liabilities = Current liabilities + Long term debt

Total liabilities = 4950+12000

Total liabilities = 16,950

According to accounting equation, stockholder's equity = Total assets - total liabilities

Stockholder's equity = 31,100-16,950 = 14,150

Value of Stockholder's equity = $14,150