i am stuck on this problem. here are pics of the problem

http://imgur.com/3GqbJuL

http://imgur.com/64WaqpQ

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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