Answer:
$1,100
Explanation:
The net working capital is the difference between a company's current assets and its current liabilities. The accounting equation which shows the relationship between all elements of the balance sheet is
Assets = liabilities + equity
Given;
Total assets of $84,300
net working capital of $22,900
owner's equity of $38,600,
long-term debt of $23,900
From the accounting equation,
Total liability = $84,300 - $38,600
= $45,700
Total liability = current liability + long term debt
Current liabilities = $45,700 - $23,900
= $21,800
Working capital = current assets - current liabilities
Current assets = $22,900 - $21,800
= $1,100
Answer:
The value of current assets is $44700.
Explanation:
The basic accounting equation establishes the relationship between assets, liabilities and equity. The equation states that:
Assets = Liabilities + Equity
84300 = (Current Liabilities + Long term Liabilities) + 38600
84300 = Current Liabilities + 23900 + 38600
84300 = Current Liabilities + 62500
84300 - 62500 = Current Liabilities
Current Liabilities = $21800
The liabilities are made up of both current and long term liabilities.
The working capital is the difference between the current assets and the current liabilities.
Working capital = Current assets - Current liabilities
22900 = Current assets - 21800
Current assets = 22900 + 21800
Current assets = $44700
