Aastha's Enterprises spent $2,400 to purchase equipment three years ago. This equipment is currently valued at $1,800 on today's balance sheet but could actually be sold for $2,000. Net working capital is $200 and long-term debt is $800. Assuming the equipment is the firm's only fixed asset, what is the book value of shareholders' equity?

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter15: Harvesting The Business Venture Investment
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Accounting problem

Aastha's Enterprises spent $2,400 to purchase
equipment three years ago. This equipment is
currently valued at $1,800 on today's balance
sheet but could actually be sold for $2,000.
Net working capital is $200 and long-term
debt is $800. Assuming the equipment is the
firm's only fixed asset, what is the book value
of shareholders' equity?
Transcribed Image Text:Aastha's Enterprises spent $2,400 to purchase equipment three years ago. This equipment is currently valued at $1,800 on today's balance sheet but could actually be sold for $2,000. Net working capital is $200 and long-term debt is $800. Assuming the equipment is the firm's only fixed asset, what is the book value of shareholders' equity?
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