Question

Delta LTD has current assets of R100 000,net non-current assets of R290 000,current liabilities of R64 000 and long term debt of R170 000 . What is the owner’s equity for Delta LTD and how much is the net working capital (NWC)

Answer 1

Total Assets = Current Assets + Net Non-Current Assets
Total Assets = 100,000 + 290,000
Total Assets = 390,000

Total Liabilities = Current Liabilities + Long-term Debt
Total Liabilities = 64,000 + 170,000
Total Liabilities = 234,000

Owner’s Equity = Total Assets - Total Liabilities
Owner’s Equity = 390,000 - 234,000
Owner’s Equity = 156,000

Net Working Capital = Current Assets - Current Liabilities
Net Working Capital = 100,000 - 64,000
Net Working Capital = 36,000