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1 Building a Balance Sheet  KCCO, Inc. has current assets of $5,300, net fixed assets of $23,900,...

1 Building a Balance Sheet  KCCO, Inc. has current assets of $5,300, net fixed assets of $23,900, current liabilities of $4,100, and long-term debt of $10,600.  What is the value of shareholder’s equity for this firm? How much is net working capital?

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Expert Solution

a. Shareholders Equity = Total assets - Total Liabilities
= $ 29,200 - $ 14,700
= $ 14,500
Where,
# 1: Calculation of total assets
Current Assets $       5,300
Net Fixed Assets $     23,900
Total assets $     29,200
# 2: Calculation of total liabilities
Current Liabilities $       4,100
Long-term debt $     10,600
Total Liabilities $     14,700
b. Net Working Capital = Current assets - Current Liabilities
= $    5,300 - $    4,100
= $    1,200

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