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Penguin Pucks, Inc., has current assets of $4,900, net fixed assets of $15,500, current liabilities of...

Penguin Pucks, Inc., has current assets of $4,900, net fixed assets of $15,500, current liabilities of $4,400, and long-term debt of $6,400.
(a) What is the value of the shareholders' equity account for this firm?
(Click to select)8,9609,60012,8008,60021,400
(b) How much is net working capital?
(Click to select)5,9005,900500-6,900-500
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Homework Answers

Answer #1

Net Worth or Share Holder's Equity = Total Assets - Out side Liablities

Given Assets:

Given Liabilities:

Total Assets = Net Fixed Assets + Current Assets

= $ 15,500 + $ 4,900

= $ 20,400

Out side Liabilities = Current Liabilities + Long term Debt

= $ 4,400 + $ 6,400

= $ 10,800

Net Worth or Share Holder's Equity = Total Assets - Out side Liablities

= $ 20,400 - $ 10,800

= $ 9,600

OPtion 2 is correct

Net Working Capital = Current Assets - Current Liabilities

= $ 4,900 - $ 4,400

= $ 500

OPtion 3 is correct

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