Question

rey Wolf, Inc., has current assets of $2,360, net fixed assets of $11,200, current liabilities of $1,445, and long-term debt of $4,170. a. What is the value of the shareholders’ equity account for this firm? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. How much is the company's net working capital? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Answer 1

A. $7,945

B. $915

Step-by-step explanation:

a. Calculation to determine the value of the shareholders' equity account for this firm

Using this formula

Owners' equity = Total liabilities and owners' equity − Current liabilities − Long-term debt

Let plug in the formula

Owners' equity = $13,560 − 1,445 − 4,170

Owners' equity = $7,945

Therefore the value of the shareholders' equity account for this firm is $7,945

b. Calculation to determine How much is the company's net working capital

Using this formula

Net working capital = Current assets − Current liabilities

Let plug in the formula

Net working capital = $2,360 − 1,445

Net working capital = $915

Therefore the company's net working capital is $915