Question

A company has net working capital of $2,157, current assets of $6,450, equity of $22,170, and long-term debt of $10,520. What is the company's net fixed assets? Multiple Choice a) $30,533 b) $28,397 c) $26,240 d) $24,327 e) $39,140

Answer 1

Answer: The correct answer a i.e. $30,533

Net Working Capital = Current Assets – Current Liabilities
$2,157 = $6,450 – Current Liabilities
Current Liabilities = $6,450 - $2,157
Current Liabilities = $4,293

Total Liabilities and Stockholders Equity = Current Liabilities + Long term Debt + Total Equity
Total Liabilities and Stockholders Equity = $4,293 + $10,520 + $22,170
Total Liabilities and Stockholders Equity = $36,983

Total Liabilities and Stockholders Equity = Total Assets
Total Assets = $36,983

Total Assets = Current Assets + Net Fixed Assets
$36,983 = $6,450 + Net Fixed Assets
Net Fixed Assets = $36,983 - $6,450
Net Fixed Assets = $30,533