Ask Question
30 September, 22:27

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 $49,700 , net fixed assets of $248,300 , current liabilities of $28,400 , and long-term debt of $101,600.

A. Calculate Caraway's stockholders' equity. B. What is the firm's net working capital?

+5
Answers (1)
  1. 30 September, 22:48
    0
    A.

    $168,000

    B.

    $21,300

    Explanation:

    A.

    As per accounting equation

    Assets = Liabilities + Equity

    Equity = Assets - Liabilities

    Placing values in the equation

    Equity = (Current assets + Net Fixed Assets) - (Current Liabilities + Long term debt)

    Equity = ($49,700 + 248,300) - (28,400 + 101,600)

    Equity = $168,000

    B.

    Net Working capital is the net of current assets and current liabilities of the company.

    Use following formula of net working capital

    Net working capital = Current assets - current liabilities

    Net working capital = $49,700 - 28,400

    Net working capital = $21,300
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The Caraway Seed Company grows heirloom tomatoes and sells their seeds. The heirloom tomato plants are preferred by many growers for their ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers