(Related to Checkpoint 3.2) (Working with the balance sheet) The Caraway Seed Co
ID: 390978 • Letter: #
Question
(Related to Checkpoint 3.2) (Working with the balance sheet)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
$ 51 comma 100$51,100,
net fixed assets of
$ 251 comma 600$251,600,
current liabilities of
$ 31 comma 900$31,900,
and long-term debt of
$ 101 comma 000$101,000.
a.Calculate Caraway's stockholders' equity.
b. What is the firm's net working capital?
c.If Caraway's current liabilities consist of
$ 21 comma 800$21,800
in accounts payable and
$ 10 comma 100$10,100
in short-term debt (notes payable), what is the firm's net working capital?
Explanation / Answer
Note: Please rate the answer.
Answer:
a)
b)
C)
Current liabilities in this case will be similar to what it is in part b, hence the net working capital will not change .
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