Question

Penguin Pucks, Inc., has current assets of $3,900, net fixed assets of $28,500, current liabilities of...

Penguin Pucks, Inc., has current assets of $3,900, net fixed assets of $28,500, current liabilities of $3,400, and long-term debt of $7,100. (a) What is the value of the shareholders' equity account for this firm? (b) How much is net working capital?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

?(a) Shareholders' equity is the amount of capital given to a business by its shareholders, plus donated capital and earnings generated by the operation of the business less dividends paid. It is calculated as follows :-

Shareholders' equity = Total assets - Total liabilities

= Current assets + Fixed assets - Current liabilities - Long term debt

   = $3,900 + $28,500 - $3,400 - $7,100

= $21,900

An alternative formula to calculate it is :-

Shareholders' equity = Share Capital + Retained earnings

(b) Net Working Capital is the amount of company's current assets minus current liabilities. It is a measure of company's short term liquidity and important for managing cash flow.

Net Working Capital = Current Assets - Current Liabilities

= $3,900 - $3,400

= $500

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
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
1.   Thomas Corp., has current assets of $8,500, net fixed assets of $32,370, current liabilities of...
1.   Thomas Corp., has current assets of $8,500, net fixed assets of $32,370, current liabilities of $6,700, and long-term debt of $15,200. What is the value of the shareholders’ equity account for this firm? How much is net working capital? 2.   Freddie’s Fish Farm, Inc., has sales of $725,000, costs of $317,300, depreciation expense of $48,000, interest expense of 28,000, and a tax rate of 21 percent. What is          the net income for this firm? 3.   Deprez, Inc., has...
A firm has current assets of $850, net fixed assets of $7,600, current liabilities of $600,...
A firm has current assets of $850, net fixed assets of $7,600, current liabilities of $600, and long-term debt of $5,100. What is the value of the shareholders’ equity account for this firm? 750 1000 1500 2000 2750
A firm had current assets of $50,000, net fixed assets of $250,000, current liabilities of $...
A firm had current assets of $50,000, net fixed assets of $250,000, current liabilities of $ 30,000, and long-term debt of $100,000 What is the firm’s stockholder equity? What is the net working capital? If its current liabilities consist of $20,000 in accounts payable and $10,000 in short-term debt (notes payable), what is the firm’s net working capital? Your submission must include and indicate clearly which EQUATIONS from the textbook that you have used, and must show steps in details...
Cleon’s, has sales of $47,000, current assets of $5,100, current liabilities of $6,200, net fixed assets...
Cleon’s, has sales of $47,000, current assets of $5,100, current liabilities of $6,200, net fixed assets of $51,500, and a profit margin of 3 percent. The firm has no long-term debt and does not plan on acquiring any, therefore, there are no interest expenses. The firm does not pay taxes nor pay any dividends. Sales are expected to increase by 5 percent next year. If all assets, short-term liabilities, and costs vary directly with sales, how much additional equity financing...
Cleon’s, has sales of $47,000, current assets of $5,100, current liabilities of $6,200, net fixed assets...
Cleon’s, has sales of $47,000, current assets of $5,100, current liabilities of $6,200, net fixed assets of $51,500, and a profit margin of 3 percent. The firm has no long-term debt and does not plan on acquiring any, therefore, there are no interest expenses. The firm does not pay taxes nor pay any dividends. Sales are expected to increase by 5 percent next year. If all assets, short-term liabilities, and costs vary directly with sales, how much additional equity financing...
Cleon’s, has sales of $47,000, current assets of $5,100, current liabilities of $6,200, net fixed assets...
Cleon’s, has sales of $47,000, current assets of $5,100, current liabilities of $6,200, net fixed assets of $51,500, and a profit margin of 5 percent. The firm has no long-term debt and does not plan on acquiring any, therefore, there are no interest expenses. The firm does not pay taxes nor pay any dividends. Sales are expected to increase by 4 percent next year. If all assets, short-term liabilities, and costs vary directly with sales, how much additional equity financing...
A firm has sales of $63,000, current assets of $13,000, current liabilities of $14,500, net fixed...
A firm has sales of $63,000, current assets of $13,000, current liabilities of $14,500, net fixed assets of $74,000, and a profit margin of 7.50%. The firm has no long-term debt and does not plan on acquiring any. The firm does not pay any dividends. Sales are expected to increase by 4% next year. If all assets, short-term liabilities, and costs vary directly with sales, how much additional equity financing is required for next year? A. $4,914 B. $2,000 C....
Delta LTD has current assets of R100 000,net non-current assets of R290 000,current liabilities of R64...
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)
Current assets = $140,000, net fixed assets = $370,000, long-term debt = $450,000, net working capital...
Current assets = $140,000, net fixed assets = $370,000, long-term debt = $450,000, net working capital = –$45,000. If liquidated, current assets will be sold for $120,000 and net fixed assets will be sold for $400,000. If repaid, both current liabilities and long-term debt will cost their book value. What is the market value of shareholders’ equity? A. Below –$110,000 B. Between –$110,000 and –$90,000 C. Between –$90,000 and –$70,000 D. Between –$70,000 and –$50,000 E. Between –$50,000 and –$30,000...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT