Final answer:
The cash Cori's Corporation has is calculated to be $1,090 by using the accounting equation and rearranging it to solve for cash. The value of Cori's Corporation's Current Assets is calculated to be $3,900.
Step-by-step explanation:
To determine the amount of cash Cori's Corporation has, we use the accounting equation: Assets = Liabilities + Equity. Since we know the book value of equity and that the only missing component is cash among the current assets, we can rearrange the equation to solve for cash:
Assets = Fixed Assets + Net Working Capital + Cash
Liabilities + Equity = Long-term Debt + Book Value of Equity
We are given that Fixed Assets are $19,470, Net Working Capital is $2,140, Long-term Debt is $8,150, and Book Value of Equity is $14,130. Net Working Capital other than cash consists of current assets minus current liabilities, so to find the value of Current Assets, we add back the Current Liabilities:
Current Assets = Net Working Capital + Current Liabilities = $2,140 + $1,760 = $3,900
Calculation:
Total Assets = Fixed Assets + Current Assets (including cash)
Total Assets = $19,470 + $3,900 = $23,370
Total Liabilities and Equity = Long-term Debt + Equity
Total Liabilities and Equity = $8,150 + $14,130 = $22,280
To find the cash, we subtract Total Liabilities and Equity from Total Assets:
Cash = Total Assets - Total Liabilities and Equity
Cash = $23,370 - $22,280 = $1,090