(Working with the balance sheet) The Caraway Seed Company grows heirloom tomatoe
ID: 2812295 • Letter: #
Question
(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 $$48,200, net fixed assets of $250,600, current liabilities of $31,100, and long-term debt of $100,100.
a. Calculate Caraway's stockholders' equity.
b. What is the firm's net working capital?
c. If Caraway's current liabilities consist of $21,500 in accounts payable and $9,600 in short-term debt (notes payable), what is the firm's net working capital?
Explanation / Answer
Req a: Total assets: Current assets 48200 Fixed assets 250600 Total assets: 298800 Less: Liabilities Current liabilities 31100 Long term debt 100100 Stockholder's equity 167600 Req b: Net Working capital: Current assets 48200 Less: Current liabilities 31100 Working capital 17100 Req c: Net Working capital Current assets 48200 Less: Accounts payable 21500 Working capital 26700
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