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Wes Motors has total assets of $98,300, net working capital of $11,300, owners' equity of $41,600, and long-term debt of $38,600. What is the value of the current assets?A) $21,600B) $18,100C) $28,900D) $29,400E) $6,800

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nkirotedoreen46

Answer:

$29,400

Explanation:

We are given;

Total assets as $98,300

Net working capital is $11,300

Owners' equity is $41,600

Long-term debt is $38,600

We are required to calculate the current assets;

We need to know the balance sheet equation which is

Total assets = Owner's equity + Total liabilities

To get total liabilities;

Total liabilities = Total assets - Owner's equity

                        = $98,300 - $41,600

                        = $56,700

But, total liabilities = Current liabilities + long-term liabilities

Therefore;

Current liabilities = $56,700 - $38,600

                             = $18,100

But, current assets = Current liabilities + net working capital

Thus,

     Current assets = $18,100 + $11,300

                               = $29,400

Therefore, the current assets are $29,400.

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