Question

A company has equity of $9,000. Long-term debt is $1,900. Net working capital, other than cash, is $2,500. Fixed assets are $2,200. What amount of cash does the company have

Answer 1

Answer:

$6,200

Explanation:

A company has an equity of $9,000

The long term debt is $1,900

Net working capital is $2500

Fixed assets is $2,200

Therefore the amount of cash owned by the company can be calculated as follows

= $2500+$2200

= $4,700

= $9000-$4700

$4300

= $4300+$1900

= $6,200

Hence the amount of cash owned by the company is $6,200