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The Caraway Seed Company grows heirloom tomatoes and sells their seeds. The heir

ID: 2811772 • Letter: T

Question

The Caraway Seed Company grows heirloom tomatoes and sells their seeds. The heirloom tomato plants are preferred by many growers for their superior. At the end of the most recent year the firm had current assets of $49,200, net fixed assets of $250,800, and current liabilities of $30,200 and long-term debt of $102,000.
a.Calculate Caraways Stockholder equity
b. What is the firms net working capitol
c. If Caraway's curent liabilities consist of $19,900 in accounts payable and $10,300 in short term debt (notes payable). What is the firms net working capitol?

Calculate Caraway's Stockholder equity.
Please show work/forumla (no excel please) and ensure work is accurate. Thank You.

Explanation / Answer

Answer a.

Total Assets = Current Assets + Net Fixed Assets
Total Assets = $49,200 + $250,800
Total Assets = $300,000

Total Liabilities = Current Liabilities + Long-term Debt
Total Liabilities = $30,200 + $102,000
Total Liabilities = $132,200

Stockholders Equity = Total Assets - Total Liabilities
Stockholders Equity = $300,000 - $132,200
Stockholders Equity = $167,800

Answer b.

Net Working Capital = Current Assets - Current Liabilities
Net Working Capital = $49,200 - $30,200
Net Working Capital = $19,000

Answer c.

Net Working Capital = $19,000

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