Page 203 - Calculating Agriculture Cover 20191124 STUDENT - A

CH 21] Calculating Agriculture 21-19

Homework #21-1
Name: _________________
Problems: 1— 24
Refer to pages 21-2 to 21-7

1. Westphalia Trucking, Inc. has total current liabilities of $280,000, total Fixed Liabilities
of $910,000, total fixed assets of $669,000, and current assets of $490,000. Find the
company's working capital.

Solution algorithm:

Working Capital = Current Assets – Current Liabilities
= $490,000 − $ 280,000
= $210,000

2. Rumph Poultry has Total Current Assets of $494,000, Total Fixed assets of $709,800,
Total Long-Term Liabilities (Notes Payable & Mortgages) of $702,780, and Current
Liabilities of $210,600. How much is Desert News’ working capital.

Solution algorithm:

Working Capital = Current Assets – Current Liabilities 21
= $494,000 − $ 210,600
= $283,400

3. Ike Clanton’s Tucson Cattle Trading Company has Total Current Assets of $675,000,
Total Fixed assets of $71,327,000, Total Long-Term Liabilities (Notes Payable &
Mortgages) of $650,000, and Current Liabilities of $290,000. How much is Ike Clanton’s
working capital.

Solution algorithm:

Working Capital = Current Assets – Current Liabilities
= $675,000 − $ 290,000
= $385,000

4. The balance sheet of the Starke and William Company shows the following:
Accounts payable $ 28,750
Notes payable 20,000
Mortgage payable 181,250
Christina Starke, net worth 95,625
Roger Williams, net worth 140,625

Determine (a) the creditors' equity and (b) the owners' equity in this firm.

Solution algorithm:

Creditors
Accounts payable $ 28,750
Notes payable 20,000
Mortgage payable 181,250
(a) Creditors Equity 230,000

Owners
Christina Starke, net worth 95,625
Roger Williams, net worth 140,625
(b) Owners’ Equity 236,250

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