E) Brief questions

1.- Explain where do you find the net book value of a company and how do you calculate it. (3 points)

2.- Define what is working capital and how do you know if a company has a good liquidity position. (4 points

Assets Cash Prepaid rent Unexpired insurance Accounts receivable Supplies Current assets 5.200 900 3500 400 Liabilities & SHE 15.400 Accounts payable 800 Salaries payable 3.000 Unearned revenue 8.200 Income taxes payable 900 28.300 Current liabilities Notes payable Total liabilities: 25.700 Stockholders' Equity Capital stock 26.000 Retained earnings O Total stockholders' equity 100.000 Total liabilities and stockholders' equity 10.000 53.800 63.700 Automobile Accoumulated depreciation: auto Equipment and music Accoumulated depreciation: equipment Dividends Total assets 37.700 -12.000 39.000 -13.000 3.000 3.000 66.700