1.

Beaupre Ltee has property, plant, and equipment of $250,000, current assets of $125,000, non-
current liabilities of $125,000, and accounts payable within 12 months of $75,000.
a) What is the networking working capital?
b) What are the total assets of the company?
c) What is the shareholders' equity?
Given
Tangible non-current asset = $250,000
Current assets = $125,000
Non-current liabilities = $125,000
Current Liabilities = $75,000
a) Required: working capital
Solution
Working Capital = Current Asset – Current Liabilities
= $125,000 - $75,000
= $50,000
 The networking working capital for the firm is $ 75,000
b) Required: Total assets of the company
Solution
Total Asset = Total liability + Shareholders’ Equity
Also,
Total asset = Current Asset + Non-current asset
Since shareholders’ Equity information is not given we choose the second formula to calculate
the total asset,
Total asset = Current asset + Non-current asset
=$125,000+$250,000
=$375,000
Hence, the total assets of the company by the given information is $375,000

c) Required: Shareholders’ Equity

Solution:
As it is discussed in question ‘b’,
Total Assets = Total liabilities + Shareholders’ Equity
 Shareholders’ Equity = Total assets – Total Liabilities
But before we proceed with the calculation, we have to calculate the Total liabilities,
Total liabilities = Current Liabilities + Non-current Liabilities
= $75,000+$125,000
=$200,000
So based upon this result,
Shareholders’ Equity = Total assets – Total Liabilities
=$375,000 - $200,000
=$175,000
Hence, the shareholders’ equity is $175,000
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