Answer :
Answer:
$48,580
Explanation:
Shareholder's equity is equal to total assets - total liabilities.
Bernard Auto has shareholder equity = $121,400
Liabilities are $132,000, of which 40% are current liabilities.
the net fixed assets are $151, 620.
Net working capital? net working capital = currents assets - current liabilities
Current liabilities =40% of 132,000
=40/100 x $132,000
=$52,800
To calculate total assets, we use a re -arranged formula of shareholders equity
$121,400 = total assets - 132,000
Total assets =$253,000
If fixed assets are $151, 620, currents assets will be total assets -fixed assets
=$253,000 - 151,620 =$101,380
Net working capital: $101,380 - $52,800= $48, 580
Net working capital =$48,580