In: Finance
A firm has net working capital of $560. Long-term debt is $4,500, total assets are $8,350, and fixed assets are $3,700.
Q. What is the amount of total liabilities?
Long term debt = $4,500
Net Working capital = $560
Total Assets = $8,350
Fixed Assets = $3,700
Current Assets = Total Assets - Fixed Assets = $8,350 - $3,700 = $4,650
Current Liabilites = Current Assets - Net Working Capital = $4,650 - $560 = $4,090
Total liabilities = Long term debt + Current liabilities = $4,500 + $4,090 = $8,590
Therefore, amount of total liabilities is $8,590