In: Finance
Farah’s Fashions has net working capital of $600, long-term debt of $4,000, total assets of $8,200 and net fixed assets of $4,200. What is the amount of total liabilities?
Select one: a. $3,400 b. $4,000 c. $4,130 d. $7,400 e. None of the above.
Current assets = total assets - fixed assets | |||||||
=$8200-4200 | |||||||
=$40000 | |||||||
Current liabilities = Current assets - working capital | |||||||
=$4000-600 | |||||||
=$3400 | |||||||
Total Liabilities = current liabilities + long term debt | |||||||
=$3400+4000 | |||||||
=$7400 | |||||||
Correct Option : d.$7400 | |||||||