Gino's Winery has net working capital of $29,800, net fixed assets of $64,800, current liabilities of $34,700, and long-term debt of $23,000.What is the value of the owners' equity?
A)$36,900
B)$66,700
C)$71,600
D)$89,400
E)$106,300

Question

Quizplus · Accepted Answer

The owners' equity can be calculated using the balance sheet equation: Owners' Equity = Total Assets - Total Liabilities. Total Assets = Net Working Capital + Net Fixed Assets = $29,800 + $64,800 = $94,600. Total Liabilities = Current Liabilities + Long-term Debt = $34,700 + $23,000 = $57,700. Therefore, Owners' Equity = $94,600 - $57,700 = $36,900.

Gino's Winery Has Net Working Capital of $29,800, Net Fixed