Question

A company has total equity of $2,160, net working capital of $240, long-term debt of $1,070, and current liabilities of $4,500. What is the company's net fixed assets?

Answer 1

$2,990

Step-by-step explanation:

A company's fixed asset consist of its plants and machineries, motor vehicles , buildings etc.

To get the company's net fixed asset, we would subtract the networking capital from total equity and add up long term debt.

Therefore,

Net fixed asset = $2,160 total equity - $240 working capital + $1,070 long term debt

= $2,990

Hence net fixed asset is $2,990