Penguin Pucks, Inc., has current assets of $5,400, net fixed assets of $23,700, current liabilities of $4,700, and long-term debt of $11,500.

What is the value of the shareholders’ equity account for this firm?

Shareholders' equity

$

How much is net working capital?

Net working capital

$

Explanation:

To find owners' equity, we must construct a balance sheet as follows:

  

Balance Sheet
CA	$	5,400		CL	$	4,700
NFA		23,700		LTD		11,500
				OE		??
TA	$	29,100		TL & OE	$	29,100

  

We know that total liabilities and owners' equity (TL & OE) must equal total assets of $29,100. We also know that TL & OE is equal to current liabilities plus long-term debt plus owners' equity, so owners' equity is:

OE = $29,100 – 11,500 – 4,700 = $12,900

NWC = CA – CL = $5,400 – 4,700 = $700