Question

Building a Balance Sheet. ABCO, Inc. has current assets of $15,200, net fixed assets of

$4,900, current liabilities of $6,600, and long-term debt of $10,000. What is the value of the

shareholder’s equity? How much is net working capital? Show your Balance Sheet.

Answer 1

ABCO Inc
Balance Sheet
LIABILITIES & EQUITY	Amount ($)	ASSETS	Amount ($)
Shareholder’s equity		Current Assets	15,200
Shareholder’s equity	3,500
		Net Fixed Assets	4,900
Liabilities
Current liabilities	6,600
Long-term debt	10,000
TOTAL	20,100	TOTAL	20,100

Net Working Capital

Net Working Capital = Total current assets – Total current liabilities

= $15,200 - $6,600

= $8,600