The records of Superstores shows a loan of #14,000 from Bala,creditor #8,000 and assets #190,500.
FINANCIAL
JAMB 2016
The records of Superstores shows a loan of #14,000 from Bala,creditor #8,000 and assets #190,500. What is the firm's capital?
- A. #184, 000
- B. #196,500
- C. #212,000
- D. #168,500
Correct Answer: D. #168,500
Explanation
The net workingcapital formula is calculated by subtracting the current liabilities from the current assets.
Assets = 190,500
liabilities = 14,000 + 8,000 = 22,000
190,500 - 22,000 = 168,000 (capital)
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