1. The Franco Sette, Inc., has net working capital of $6,100, long-ter

QUESTION

1. The Franco Sette, Inc., has net working capital of
$6,100, long-term debt of $10,400,
total debt of $15,200, and owners equity of $18,900. What
is the value of The Bake Shoppes
net fixed assets?
A. $12,800
B. $16,500
C. $18,900
D. $21,300
E. $23,200
Solution: Option E is correct. Amount Formula Used Total Debt $ 15,200 Owners Equity $ 18,900 Total Assets $ 34,100 Total Debt + Owners Equity Long Term Debt $ 10,400 Current Liabilities $ 4,800 Total Debt “ Long Term Debt Net Working Capital $ 6,100 Current¦

ets $ 10,900 Net Working Capital + Current Liabilities Net Fixed Assets $ 23,200 Total Assets “ Current Assets Therefore,Bake Shoppesnet fixed assets value is $23200 (Option E).

ANSWER:

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