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Kroeger, Inc., has current assets of $2,320, net fixed assets of $10,800, current liabilities of $1,425,...

Kroeger, Inc., has current assets of $2,320, net fixed assets of $10,800, current liabilities of $1,425, and long-term debt of $4,130. (Enter your answer as directed, but do not round intermediate calculations.)
Requirement 1:

What is the value of the shareholders’ equity account for this firm?
  Shareholder's equity $   
Requirement 2:

How much is net working capital?
  Net working capital

Solutions

Expert Solution

1)

Shareholder’s equity = Assets – Liabilities

                                 = Current assets + Net fixed assets - (Current liability + Long term debt)

                                = $ 2,320 + $ 10,800 – ($ 1,425 + $ 4,130)

                                = $ 13,120 - $ 5,555 = $ 7,565

2)

Net working capital = Current assets – Current liabilities

                                 = $ 2,320 - $ 1,425 = $ 895

jeff jeffy answered 1 year ago
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