Gino's Winery has net working capital of $29,800, net fixed assets of $64,800, current liabilities of $34,700, and long-term debt of $23,000. What is the value of the owners' equity?

a. $36,900

b. $66,700

c. $71,600

d. $89,400

e. $106,300

c. $71,600

Explanation:

The net working capital = Current assets - current liabilities

$29,800 = Current assets - $34,700

So, the current assets

= $34,700 + $29,800

= $64,500

And, the total asset equal to

= Net Fixed asset + current asset

= $64,800 + $64,500

= $129,300

Total liabilities equal to

= Long term debt + current liabilities

= $23,000 + $34,700

= $57,700

So, the owners equity would be

= $129,300 - $57,700

= $71,600