In: Finance
A company in NY 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?
Given,
Net working capital = $8000
Current assets = $12000
Total assets = $30000
Long term debt = $7500
Solution :-
Current liabilities = Current assets - net working capital
= $12000 - $8000 = $4000
Now,
Book value of the equities for the firm
= Total assets - Long term debt - current liabilities
= $30000 - $7500 - $4000
= $18500