Answer:
1. $695
2.$6,150
Explanation:
1. Calculation of How much cash does the company have.
The total liabilities and equity of the company will be the net book worth in addition with the current liabilities as well as long-term debt.
Hence,
Total liabilities and equity = $13,480 + 1,850 + 8,750
Total liabilities and equity = $24,080
The of $24,080 is equal to the total assets of the company because the total assets are the Total of all assets in which cash is an asset. Therefore the cash account must be equal to total assets less all other assets.
Hence,
Cash = $24,080 – 17,930 – 3,605 – 1,850
Cash = $695
2. Calculation of the value of the current asset
The total of the Net Working Capital will be:
Net Working Capital = $695 + $3,605
Net Working Capital = $4,300
Calculation of the total current assets using the Net Working Capital equation.
Net Workingg Capital = CA – CL
$4,300 = CA – $1,850
CA = $6,150
