CSX Enterprises has total assets of $11,700, net working capital of $1,600, owne
ID: 2739653 • Letter: C
Question
CSX Enterprises has total assets of $11,700, net working capital of $1,600, owners' equity of $5,000 and long-term debt of $3,500. What is the value of the current assets?
CSX Enterprises has total assets of $11,700, net working capital of $1,600, owners' equity of $5,000 and long-term debt of $3,500. What is the value of the current assets?
CSX Enterprises has total assets of $11,700, net working capital of $1,600, owners' equity of $5,000 and long-term debt of $3,500. What is the value of the current assets?
Explanation / Answer
Current liability
= Total assets - (Owners' equity + long-term liability)
= $11,700 - ($5000 + $3500)
= $3,200
And,
Net working capital = Current assets - Current liabilities
Or,
$1,600 = Current assets - $3,200
Or,
Current assets = $1,600 + $3,200 = $4,800
Therefore, value of current assets is $4,800.