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Sagot :
According to the solving the value of the shareholders' equity account for this firm and net working capital is:
shareholders' equity = 14,700
net working capital = 1,400
What does the term "shareholders' equity" mean?
The amount that a founder of the company have invested in the company is referred to as equity held by shareholders. This includes both the money they had directly invested and all of the earnings the company has made and reinvested since it was founded.
What exactly is net working capital?
The difference between such a company's current assets—such as business cash, accounts receivable/unpaid invoices from customers, including inventories of raw materials and completed goods—and its current liabilities—such as debts and accounts.
According to the given data:
Given:
current assets of $4,300
net fixed assets of $24,000
current liabilities of $2,900
long-term debt of $10,700
Shareholder's equity = Assets - Liabilities
= (4,300 + 24,000) - (10,700 - 2,900)
= 14,700
NWC = Current Assets - Current Liabilities
= 4,300 - 2,900
= 1,400
To know more about shareholders' equity visit:
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