a.Formula for calculating the net working capital:
Net Working Capital= Current Assets- Current Liabilities
$216,000= Current Assets- $700,000
Current Assets= $216,000 + $700,000
                           Â
= $916,000
Book value of total assets= Current Assets + Net fixed
assets
         Â
                                      =
$916,000 + $2,000,000
                                               Â
= $2,916,000
b.Market value of net working capital= $1,030,000
Market value of fixed assets= $3,600,000
Therefore, the sum of net working capital and fixed assets:
                Â
= $1,030,000 + $3,600,000
                Â
= $4,630,000.
In case of any query, kindly comment on the solution.
