Sunset, Inc., has a book value of equity of $14,340. Long-term debt is $8,300. Net working capital, other than cash, is $2,190. Fixed assets are $19,810 and current liabilities are $1,790.

a. How much cash does the company have?
b. What is the value of the current assets?

No matter how I manipulate the Balance Sheet Identity, I can't figure out how to get the cash and current assets, since they are part of the same equation and keep canceling each other out. Help!

To determine the cash and current assets of Sunset, Inc., you can use the Balance Sheet Identity, which states:

Total Assets = Total Liabilities + Shareholders' Equity

Let's break down the information given to solve for the cash and current assets:

1. Book Value of Equity = $14,340
This represents the total value of shareholders' equity.

2. Long-term Debt = $8,300
This represents the total value of long-term liabilities.

3. Net Working Capital (excluding cash) = $2,190
This represents the difference between current assets (excluding cash) and current liabilities.

4. Fixed Assets = $19,810
This represents the total value of the company's fixed assets.

5. Current Liabilities = $1,790
This represents the total value of the company's current liabilities.

Using the Balance Sheet Identity, we can rearrange it to solve for total assets:

Total Assets = Total Liabilities + Shareholders' Equity

Total Assets = (Long-term Debt + Current Liabilities) + (Book Value of Equity + Net Working Capital + Fixed Assets)

Now, let's substitute the provided values:

Total Assets = ($8,300 + $1,790) + ($14,340 + $2,190 + $19,810)

Total Assets = $10,090 + $36,340

Total Assets = $46,430

Now that we have the total assets, we can find the value of cash and current assets:

a. Cash:
To calculate the cash, you need to subtract the value of other assets (fixed assets) from the total assets:

Cash = Total Assets - Fixed Assets
Cash = $46,430 - $19,810
Cash = $26,620

Therefore, the company has $26,620 in cash.

b. Current Assets:
To calculate the value of current assets, you need to subtract the value of fixed assets and current liabilities from the total assets:

Current Assets = Total Assets - (Fixed Assets + Current Liabilities)
Current Assets = $46,430 - ($19,810 + $1,790)
Current Assets = $46,430 - $21,600
Current Assets = $24,830

Therefore, the value of the company's current assets is $24,830.

By following these steps, you should now have calculated the values of cash ($26,620) and current assets ($24,830) for Sunset, Inc.