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Peeples, Inc., has a book value of equity of $12,870. Long-term debt is $7,250. Net working capital, other than cash, is $1,840. Fixed assets are $17,430 and current liabilities are $1,580.
a. How much cash does the company have? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
b. What is the value of the current assets? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
The purpose of this assignment is to allow students the opportunity to understand the importance of cash flow and its usefulness in business.
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