Cash Equation: Bettendorf Corporation has a book net worth of $17,800. The company's long-term debt is $6,900. Its net working capital, excluding cash, is $1,600. Its fixed assets are $21,300. How much cash does the company have? If the current liabilities are $2,575, what are the current assets?

To determine the amount of cash that Bettendorf Corporation has, we need to use the cash equation.

Cash Equation:
Assets = Liabilities + Equity

Given information:
Book Net Worth = $17,800
Long-term Debt = $6,900
Net Working Capital (excluding cash) = $1,600
Fixed Assets = $21,300
Current Liabilities = $2,575

First, we need to calculate the equity of the company. Equity is calculated by subtracting liabilities from assets:

Equity = Book Net Worth + Long-term Debt
Equity = $17,800 + $6,900
Equity = $24,700

Next, we need to calculate the current assets. The current assets consist of cash, net working capital (excluding cash), and fixed assets:

Current Assets = Cash + Net Working Capital (excluding cash) + Fixed Assets

Since we know the total current liabilities, we can use the fact that:

Current Liabilities = Current Assets - Long-term Debt

Let's substitute the given values and solve for Current Assets:

$2,575 = Current Assets - $6,900

Adding $6,900 to both sides:

$2,575 + $6,900 = Current Assets - $6,900 + $6,900

$9,475 = Current Assets

Therefore, the total current assets of the company are $9,475.

To find the amount of cash, we substitute the known values into the current asset equation:

Current Assets = Cash + Net Working Capital (excluding cash) + Fixed Assets

$9,475 = Cash + $1,600 + $21,300

Rearranging the equation:

Cash = $9,475 - $1,600 - $21,300

Cash = -$13,425

From the calculations, we can observe that the calculated cash value is negative, which suggests that the company has negative cash. It is unusual for a company to have negative cash, so it may be worth double-checking the given information.