Wims, Inc., has current assets of $4,000, net fixed assets of$23,100, current liabilities of $2,500, and long-term debt of$12,400. a. What is the value of the shareholdersâ equity accountfor this firm? (Do not round intermediate calculations.) b. Howmuch is net working capital? (Do not round intermediatecalculations.)
Wims, Inc., has current assets of $4,000, net fixed assets of$23,100, current liabilities of $2,500, and long-term debt of$12,400. a. What is the value of the shareholdersâ equity accountfor this firm? (Do not round intermediate calculations.) b. Howmuch is net working capital? (Do not round intermediatecalculations.)
Related questions
Graffiti Advertising, Inc., reported the following financialstatements for the last two years.
| 2016 Income Statement | |||
| Sales | $ | 567,200 | |
| Costs of goods sold | 274,005 | ||
| Selling and administrative | 124,729 | ||
| Depreciation | 54,572 | ||
| EBIT | $ | 113,894 | |
| Interest | 19,384 | ||
| EBT | $ | 94,510 | |
| Taxes | 37,804 | ||
| Net income | $ | 56,706 | |
| Dividends | $ | 10,000 | |
| Addition to retained earnings | $ | 46,706 | |
| GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2015 | |||||||
| Cash | $ | 13,360 | Accounts payable | $ | 9,500 | ||
| Accounts receivable | 18,990 | Notes payable | 14,504 | ||||
| Inventory | 13,798 | Current liabilities | $ | 24,004 | |||
| Current assets | $ | 46,148 | |||||
| Long-term debt | $ | 136,480 | |||||
| Net fixed assets | $ | 344,546 | Owner's equity | $ | 230,210 | ||
| Total assets | $ | 390,694 | Total liabilities and ownersâ equity | $ | 390,694 | ||
| GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2016 | |||||||
| Cash | $ | 14,346 | Accounts payable | $ | 10,516 | ||
| Accounts receivable | 21,095 | Notes payable | 16,470 | ||||
| Inventory | 22,758 | Current liabilities | $ | 26,986 | |||
| Current assets | $ | 58,199 | |||||
| Long-term debt | $ | 152,400 | |||||
| Net fixed assets | $ | 406,307 | Owner's equity | $ | 285,120 | ||
| Total assets | $ | 464,506 | Total liabilities and ownersâ equity | $ | 464,506 | ||
a. Calculate the operating cash flow.(Do not round intermediate calculations and round youranswer to the nearest whole number, e.g., 32.)
Operating cash flow $
b. Calculate the change in net working capital.(Do not round intermediate calculations and round youranswer to the nearest whole number, e.g., 32.)
Change in net working capital $
c. Calculate the net capital spending. (Donot round intermediate calculations and round your answer to thenearest whole number, e.g., 32.)
Net capital spending $
d. Calculate the cash flow from assets. (Anegative answer should be indicated by a minus sign. Do not roundintermediate calculations and round your answer to the nearestwhole number, e.g., 32.)
Cash flow from assets $
e. Calculate the cash flow to creditors.(Do not round intermediate calculations and round youranswer to the nearest whole number, e.g., 32.)
Cash flow to creditors $
f. Calculate the cash flow to stockholders.(A negative answer should be indicated by a minus sign. Donot round intermediate calculations and round your answer to thenearest whole number, e.g., 32.)
Cash flow to stockholders $
