McConnell Corp. has a book net worth of $16,500. Long-term debt is $7,800. Net w
ID: 2674334 • Letter: M
Question
McConnell Corp. has a book net worth of $16,500. Long-term debt is $7,800. Net working capital, other than cash, is $1,900. Fixed assets are $20,700. How much cash does the company have? If current liabilities are $2,750, what are the current assets?Net Worth $16,500
Long-term Debt $7,800
Net Working Capital (Excluding Cash) $1,900
Fixed Assets $20,700
Current Liabilities $2,750
Cash = __________ + ____________ - ____________ - ___________
Net Working Capital (including cash) = ________________ + _____________
Current Assets = ____________ + _____________
Explanation / Answer
(C.assets-Cash) - C.Liabilities=1900 C.Assets-Cash=1900+2750= 4650. Total Liabilities= Net worth:------- $16500 Long Term Debt: $ 7800 Current liabilities:$ 2750 Total liabilities: $27,050 So Total Assets: $27,050 which consists of : Current Assets= Total Assets-Fixed Assets: $27,050- $20,700= $6350 Current Assets- Cash = -----------------------------------------------$4650 *CASH=-------------------------------------------------------------------$1700 *NET WORKING CAPITAL: $ 6350-$2750=$ 3600 *CURRENT ASSETS: $6350