Sam's Corporation has equity value of $14,480. The long term debt is $9,970. Net working capital other then cash is $3,340. Fixed assets are $12,840.
A. How much cash does the company have? If current liabilities are $4,980.
B. What is the total current assets?
Current assets other than cash - Current liabilities = Net workign capital other than cash = $ 3,340.
Fixed assets = $ 12,840
Equity = $ 14,480
Long term debt = $ 9,970.
A. Formula , Total assets = Total liabilities
Cash + Current assets other than cash + Fixed assets = Current liabitlities + LOng term debt + Equity
Cash + Current assets other than cash - Current liabilities + Fixed assets = Long term debt + Equity
Cash + Net working capital other than cash + Fixed assets = Long term debt + Equity value
Cash + $ 3,340 + $ 12,840 = $ 9,970 + $ 14,480.
Cash = $ 9,970 + $ 14,480 - $ 12,840 - $ 3,340.
Cash = $ 8,270.
B. Cash + Net working capital other than cash = $ 8,270 + $ 3,340
Current assets - Current liabilityies = $ 8270 + $ 3340
Current assets = $ 8270 + $ 3340 -$ 4980
Current assets = $ 6,630.
Get Answers For Free
Most questions answered within 1 hours.