i am stuck on this problem. here are pics of the problem
any help would be appreciated
Working capital is = $ 95000
Current Assets - Current liabilites = Working captial
Thus Current Assets are = 95000+ 37500 = 132500
Inventory is = 132500 - 9000 - 42000 - 21000 = 60500
Total Assets = Current Assets + Total long term assets = 342500, it will be same for total liablites and stockholders' equity
Accounts payable = 37500 - 10500 - 12000 = 15000
Total liabilites = Debt to asset ratio is the way to find out
40% = Debt / 342500
Total liabilites = 137000
Total liabilites - current laiblites = mortgage payable
137000 - 37500 = 99500
Assets - liaiblites = Total stockholders' equity
total stockholders 'equity = 205500
retained earning = stock holders' equity - common stock = 205500 - 105000 = 100500
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