The Caraway Seed Company grows heirloom tomatoes and sells their seeds. The heirloom tomato plants are preferred by many growers for their superior flavor. At the end of the most recent year the firm had current assets of $51,100 net fixed assets of $250,000, current liabilities of $30,300, and long-term debt of $ 100,800. A. Calculate Caraway's Stockholders' Equity. B. What is the firm's net working capital? C. If Caraway's current liabilites consist of $20,900 in accounts payable and $9,400 in short-term debt (notes payable), what is the firm's net working capital?
Answer 1)
Sharegholders' Equity = Total Assets - Current liabilities - LOng Term Term Debt
= (51100 + 250,000) - 30300 - 100,800
= 260,000
Answer 2)
Net Working Capital = Currect Assets - Current Liabilities
= 51100 - 30300
= 20,800
Answer 3)
Net Working Capital = Currect Assets - Current Liabilities
= 51100 - 20900 - 9400
= 20,800
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