Final answer:
To calculate shareholders' equity, total assets are subtracted by long-term debt. Given the current assets and net fixed assets provided, the calculation leads to a negative shareholders' equity, which suggests an error in the question or additional information needed.
Step-by-step explanation:
The subject of the schoolwork question is in the field of Business, specifically focusing on financial statements and shareholders' equity calculation. To determine the value of shareholders' equity, we can use the accounting equation:
Assets = Liabilities + Shareholders' Equity
Given:
- Current Assets = $2090
- Net Fixed Assets = $1710
- Long-term Debt = $4520
We can find the total assets by adding current assets and net fixed assets:
Total Assets = Current Assets + Net Fixed Assets = $2090 + $1710 = $3800
Now, we apply the accounting equation to solve for shareholders' equity:
Shareholders' Equity = Total Assets - Long-term Debt
Shareholders' Equity = $3800 - $4520 = -$720
However, since the value of shareholders' equity cannot be negative in this context, it is likely that additional information is needed to solve the problem, such as current liabilities, or there may be an error in the question's given values. If retracting long-term debt from total assets results in a negative number, it suggests that the company has more liabilities than assets, which could indicate insolvency.