Desola cobola, a business man has the following assets and liabilities as at 01/01/07 Le
| Le | |
| stock | 120,000 |
| fixtures | 335,000 |
| Debtors | 111,000 |
| Overdraft | 27,000 |
| machinery | 348,000 |
| motor vehicles | 232,000 |
| cash | 82,000 |
| creditors | 101,000 |
From the above information, calculate the following:
(a) Total fixed assets
(b) Total current assets
(c) Total current liabilities
(d) The working capital
(e) The capital employed
Explanation
(a) Total Fixed Asset (Le)
Fixtures 335,000
Machinery 348,000
Motor Vehicle 232,000
915,000
(b)Total Current Assets (Le)
Stocks 120,000
Debtors 111,000
cash 82,000
313,000
(c) Total Liabilities: Le
creditors 101,000
Overdraft 27,000
128,000
(d) Working capital = Current assets - current liabilities
Current Assets: (Le)
Stocks 120,000
Debtors 111,000
Cash 82,000 313,000
Less current liabilities:
Creditors 101,000
Overdraft 27,000 (128,000)
185,000
(e) capital employed = Total assets - current Liabilities
Total fixed assets Le Le
fixtures 335,000
machinery 348,000
motor vehicle 232,000 915,000
Total current assets
stocks 120,000
debtor 111,000
cash 82,000 313,000
1,228,000
Less current liabilities:
creditors 101,000
overdraft 27,000 128,000
1,100,000