Questions: S02-01 Building a Balance Sheet [LO1] Burrow, Incorporated, has current assets of 5,200, net fixed assets of 27,300, current liabilities of 4,100, and long-term debt of 10,900. a. What is the value of the shareholders' equity account for this firm? Note: Do not round intermediate calculations. b. How much is net working capital? Note: Do not round intermediate calculations. a. Shareholders' equity b. Net working capital

To solve the given problem, we need to calculate two financial metrics for Burrow, Incorporated: shareholders' equity and net working capital.

The formula to calculate shareholders' equity is:

\[ \text{Shareholders' Equity} = \text{Total Assets} - \text{Total Liabilities} \]

First, we calculate the total assets:

• Current Assets = \$5,200
• Net Fixed Assets = \$27,300

\[ \text{Total Assets} = \text{Current Assets} + \text{Net Fixed Assets} = \$5,200 + \$27,300 = \$32,500 \]

Next, we calculate the total liabilities:

• Current Liabilities = \$4,100
• Long-term Debt = \$10,900

\[ \text{Total Liabilities} = \text{Current Liabilities} + \text{Long-term Debt} = \$4,100 + \$10,900 = \$15,000 \]

Now, we can find the shareholders' equity:

\[ \text{Shareholders' Equity} = \$32,500 - \$15,000 = \$17,500 \]

Net working capital is calculated as:

\[ \text{Net Working Capital} = \text{Current Assets} - \text{Current Liabilities} \]

Using the given values:

\[ \text{Net Working Capital} = \$5,200 - \$4,100 = \$1,100 \]

• a. Shareholders' equity is \$17,500.
• b. Net working capital is \$1,100.