Question

You find the following financial information about a company: net working capital = $1,005; fixed assets = $6,025; total assets = $8,510; and long-term debt = $4,541. What are the company's total liabilities?

Answer 1

$6,021

Step-by-step explanation:

The computation of the company's total liabilities is shown below:-

Current Assets = Total Assets - Fixed Assets

= $8,510 - $6,025

= $2,485

Current Liabilities = Current Assets - Net Working Capital

= $2,485 - $1,005

= $1,480

Total Liabilities = Long-Term Debt + Current Liabilities

= $4,541 + $1,480

= $6,021