Final answer:
The value of the shareholders' equity account for Sankey, Inc. is $14,150. The net working capital for the company is $1,050.
Step-by-step explanation:
The value of the shareholders' equity account for Sankey, Inc. can be calculated by subtracting the total liabilities from the total assets. Shareholders' equity represents the residual interest in the assets of a company after deducting liabilities. It can be computed as follows:
Shareholders' equity = Total assets - Total liabilities
Given that Sankey, 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, the calculation would be:
Shareholders' equity = (Current assets + Net fixed assets) - (Current liabilities + Long-term debt)
Shareholders' equity = ($6,000 + $25,100) - ($4,950 + $12,000)
Shareholders' equity = $31,100 - $16,950
Shareholders' equity = $14,150
The net working capital can be calculated by subtracting current liabilities from current assets. Net working capital represents the difference between a company's current assets and its current liabilities. It can be computed as:
Net working capital = Current assets - Current liabilities
Given that Sankey, Inc. has current assets of $6,000 and current liabilities of $4,950, the calculation would be:
Net working capital = Current assets - Current liabilities
Net working capital = $6,000 - $4,950
Net working capital = $1,050