Question

Hope Industries has net working capital of $15,600, current assets

of $35,800, equity of $13,100, and net fixed assets of $12,800.
What is the amount of the long-term debt?

Answer 1

The amount of long-term debt is -$41,500, but this doesn't make sense.

Step-by-step explanation:

To determine the amount of long-term debt, we need to subtract the net working capital, current assets, equity, and net fixed assets from the total assets. The formula is:

Long-term Debt = Total Assets - Net Working Capital - Current Assets - Equity - Net Fixed Assets

Using the given information:

Net Working Capital = $15,600

Current Assets = $35,800

Equity = $13,100

Net Fixed Assets = $12,800

Plugging in the values:

Long-term Debt = $35,800 - $15,600 - $35,800 - $13,100 - $12,800

Long-term Debt = $-41,500

Based on the calculations, the amount of long-term debt is -$41,500. However, this doesn't make sense as debt cannot be negative. It is possible that there is missing or incorrect information provided.