In: Finance
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?
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 |