3 June, 17:49

# 6. Kroeger Exporters has total assets of \$74,300, net working capital of \$22,900, owners' equity of \$38,600, and long-term debt of \$23,900. What is the value of the current assets

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1. 3 June, 19:12
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Current assets = \$34,700.

Explanation:

We know,

Total assets = Current assets + Non current assets (property, plan and equipment).

Again, total assets = Liabilities + Owners equity

Again,

Liabilities = Current liabilities + Long term liabilities.

Finally, net working capital = Current assets - Current liabilities

Given,

Total assets = \$74,300

net working capital = \$22,900

owners' equity = \$38,600

long-term debt = \$23,900

Putting the values into the formulas,

Total assets = Liabilities + Owners equity

or, \$74,300 = Liabilities + \$38,600

or, Liabilities = \$74,300 - \$38,600

Liabilities = \$35,700.

Again,

Liabilities = Current liabilities + Long term liabilities.

or, \$35,700 = Current liabilities + \$23,900

or, Current liabilities = \$35,700 - \$23,900

Current liabilities = \$11,800.

Therefore, Net working capital = Current assets - Current liabilities

or, \$22,900 = Current assets - \$11,800

or, Current assets = \$22,900 + \$11,800

Current assets = \$34,700.