Question

Wes Motors has total assets of 98,300, net working capital of 11,300, owners' equity of 41,600, and long-term debt of 38,600. What is the value of the current assets?

Answer 1

To calculate the value of current assets, subtract the long-term debt from the net working capital.

Step-by-step explanation:

The value of current assets can be calculated by subtracting the long-term debt from the net working capital. Net working capital is the difference between current assets and current liabilities, which includes long-term debt. So, to calculate the current assets, we use the formula: Current Assets = Net Working Capital + Long-Term Debt. In this case, the net working capital is $11,300 and the long-term debt is $38,600, so the value of the current assets is $11,300 + $38,600 = $49,900.