Wims, Inc., has current assets of $6,000, net fixed assets of $25,100, current liabilities of $4,950, and long-term debt of $12,000.

Wims, Inc., has current assets of $6,000, net fixed assets of $25,100, current liabilities of $4,950, and long-term debt of $12,000.   Explanation Note: Intermediate answers are shown below as rounded, but the full answer was used to complete the calculation.   To find owners' equity, we must construct a balance sheet as follows:    Balance Sheet   CA $ 6,000       CL $ 4,950       NFA   25,100       LTD   12,000         OE   ??                 TA $ 31,100       TL & OE $ 31,100              We know that total liabilities and owners' equity (TL & OE) must equal total assets of $31,100. We also know that TL & OE is equal to current liabilities plus long-term debt plus owners' equity, so owners' equity is:   Owners' equity = $31,100 – 12,000 – 4,950 Owners' equity = $14,150   And net working capital (NWC) is:   NWC = Current assets – Current liabilities NWC = $6,000 – 4,950 NWC = $1,050

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