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Four years ago, Velvet Purses purchased a mailing machine at a cost of $154808. This equipment is currently valued at $25955 on today's balance sheet but could actually be sold for $1729. This is the only
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36 votes
Four years ago, Velvet Purses purchased a mailing machine at a cost of $154808. This equipment is currently valued at $25955 on today's balance sheet but could actually be sold for $1729. This is the only fixed asset the firm owns. Net working capital is $92535. and long term debt is $65077. What is the book value of shareholder's equity

User Swaraj Gandhi
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1 Answer

16 votes
16 votes

Answer:

the book value of the shareholder equity is $53,413

Step-by-step explanation:

The computation of the book value of the shareholder equity is shown below;

Book value of shareholders equity is

= Book value of mailing + net working capital - Long term debt

= $25,955 + $92,535 $65,077

= $53,413

Hence, the book value of the shareholder equity is $53,413

User Andrew Medworth
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