Question

A firm has total equity of $3,082, long-term debt of $900, net working capital of $213, and current liabilities of $380. What is the amount of the net fixed assets? Group of answer choices $2,726

$4,149

$3,769

$3,389

Answer 1

Answer:
Net Working Capital = Current Assets – Current Liabilities
$213 = Current Assets - $380
Current Assets = $593

Total Liabilities = Current Liabilities + Long Term Debt
Total Liabilities = $380 + $900
Total Liabilities = $1,280

Total Liabilities and Equity = Total Liabilities + Total Equity
Total Liabilities and Equity = $1,280 + $3,082
Total Liabilities and Equity = $4,362

Total Assets = Total Liabilities and Equity
Total Assets = $4,362

Total Assets = Current Assets + Net Fixed Assets
$4,362 = $593 + Net Fixed Assets
Net Fixed Assets = $3,769