In: Finance
A firm has net working capital of $8,000 and current assets of $12,000. Total assets equal $30,000. What is the book value of the equities for the firm if long-term debt is $7,500?
$18,500
$14,500
$10,500
$18,900
net working capital=current assets-current liabilities
current liabilities=(12000-8000)=$4000
Total assets=Total liabilities+Total equity=$30,000
Total liabilities+Total equity=current liabilities+long term debt+equity
30,000=4000+7500+equity
equity=30,000-4000-7500
=$18500