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Based on the balance sheet excerpt below, ABC Co. would calculate its acid-test ratio as follows: Quick assets (cash + accounts receivable) / current liabilities. $5,000 + $55,000 / $70,000 = 0.86. This means ABC Co. has 86 cents to cover each $1 of bills it has to pay.
Assets + Liabilities = Owners Equity. 3. Net capital spending: is equal to ending net fixed assets minus beginning net fixed assets. is equal to zero if the decrease in the net fixed assets is equal to the depreciation expense. reflects the net changes in total assets over a stated period of time.
Mar 8, 2020 · Liquid net worth, simply stated, is the amount of net worth you could convert to cash today if needed. In calculation form, it would be: Liquid net worth = liquid assets – liabilities. The difference in calculating net worth and liquid net worth is understanding which of your financial assets are liquid assets.
Jul 30, 2024 · The Change in Net Working Capital (NWC) measures the net change in a company’s operating assets and operating liabilities across a specified period. If the change in NWC is positive, the company collects and holds onto cash earlier.
Jun 20, 2024 · Shareholder equity (SE) is a company's net worth and it is equal to the total dollar amount that would be returned to the shareholders if the company must be liquidated and all its debts are...
Long-term liabilities would fall to $111 million, and total liabilities and stockholders equity would be adjusted accordingly. B. Net property, plant, and equipment would fall to $116 million, and total assets and stockholders' equity would be adjusted accordingly.
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Oct 11, 2024 · A firm has common stock of $92, paid-in surplus of $290, total liabilities of $420, current assets of $410, and net fixed assets of $620. What is the amount of the shareholders' equity? Shareholders' equity = Current assets + Net fixed assets - Total liabilities.
