Question

Bing, incorporated, has current assets of $2,200, net fixed assets of $9,600, current liabilities of $1,365, and long-term debt of $4,010. what is the value of the shareholders’ equity account for this firm? note: do not round intermediate calculations and round your answer to the nearest whole number

Answer 1

To calculate the value of the shareholders' equity account for Bing, incorporated, subtract the total liabilities from the total assets. The value of the shareholders' equity account is $6,425.

Step-by-step explanation:

To calculate the value of the shareholders' equity account, we need to subtract the total liabilities from the total assets. In this case, the current assets ($2,200) and net fixed assets ($9,600) represent the total assets, and the current liabilities ($1,365) and long-term debt ($4,010) represent the total liabilities.

So, the value of the shareholders' equity account can be calculated as follows:

Shareholders' Equity = Total Assets - Total Liabilities

Shareholders' Equity = (Current Assets + Net Fixed Assets) - (Current Liabilities + Long-Term Debt)

Shareholders' Equity = ($2,200 + $9,600) - ($1,365 + $4,010)

Shareholders' Equity = $11,800 - $5,375

Shareholders' Equity = $6,425

Therefore, the value of the shareholders' equity account for Bing, incorporated, is $6,425.