Quick Total Capital Question 700, someone

joemoran

The Total Capital is listed as $1,700,000. Can someone explain how to get this? Thanks!
Cash
70,000
Accounts Payable
90,000
Accounts Receivable
140,000
Deferred Tax Liability
100,000
Inventory
460,000
Longterm Debt
520,000
Property, Plant & Equip.
1,200,000
Common Stock
600,000
Total Assets
1,870,000
Retained Earnings
360,000
–
Total Liabilities & Equity
1,870,000
Earnings Before Interest and Taxes
280,000
Interest Expense
60,000
Income Tax Expense
75,000
Net Income
145,000
LIFO Reserve at Jan. 1
185,000
LIFO Reserve at Dec. 31
250,000

btcapital

Why does subtracting cash and deferred liability from total liab and equity make sense? I understand assets = L + E, but how would subtracting cash and deferred tax liability equate to total capital?
I tried summing up debt and equity (in thousands):
Liabilities:
AP – 90
LT Debt – 520
Equity:
CS – 600
RE – 360
NI – 145
Total:1715
I noticed the difference between interest and income tax expense is 15, didn’t think it made sense, but that’s the only thing I saw would work out mathematically.
Thanks for the help.

dece2011

Total capital includes the company’s debt and shareholders’ equity, which includes common stock, preferred stock, minority interest and net debt.
Don’t remember as it has been 2 years but I guess just deduct cash and deferred liability from Total Liabilities & Equity.