You find a company with the flowing balance sheet items: Cash = $900; Shareholder equity = $575; Marketable securities = $275; Current liabilities = $950, Long-term liabilities = $1,340. What are fixed assets for the company?

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Quizplus · Accepted Answer

Fixed assets can be calculated using the balance sheet equation: Assets = Liabilities + Shareholder Equity. First, calculate total liabilities by adding current and long-term liabilities: $950 + $1,340 = $2,290. Then, find total assets by rearranging the equation to Assets = Liabilities + Shareholder Equity: $2,290 + $575 = $2,865. Finally, subtract current assets (cash and marketable securities) from total assets to find fixed assets: $2,865 - ($900 + $275) = $1,690.

You Find a Company with the Flowing Balance Sheet Items