Arredondo, Inc. has current assets of $2,170, net fixed assets of $9,300, current liabilities of $1,350, and long-term debt of $3,980. Required:
What is the value of the shareholders'equity account for this firm? How much is net working capital?

Shareholders' equity= $6,140

           Net working capital= $820          

Explanation:

Shareholders' equity  = Total  Assets - Total Liabilities

But,

Total Assets = Current assets + net fixed assets

$2,170 + $9,300 =$11,470

Total liabilities =Current Liabilities  + Long term debt

$1,350 +$3,980

=$5,330

Shareholders' equity =$11,470-$5,330 = $6,140

B) Net working capital is calculated as Current Asset - Current Liabilities

$2,170-$1,350

=$820

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