Examkin

Soru

Zorluk: OrtaCapital Structure Calculations (Working Capital, Capital Employed, Capital Owned)

The financial extract of Alhaji Usman Trading Company at the end of its trading year reveals the following account balances:

- Premises: ₦2,500,000\text{₦}2,500,000
- Equipment: ₦800,000\text{₦}800,000
- Stock (Inventory): ₦450,000\text{₦}450,000
- Trade Debtors: ₦250,000\text{₦}250,000
- Cash at Bank: ₦100,000\text{₦}100,000
- Trade Creditors: ₦200,000\text{₦}200,000
- Bank Overdraft: ₦150,000\text{₦}150,000

What is the Capital Employed of the business?

  1. ₦3,750,000\text{₦}3,750,000Cevap
  2. B
    ₦4,100,000\text{₦}4,100,000
  3. C
    ₦4,450,000\text{₦}4,450,000
  4. D
    ₦3,900,000\text{₦}3,900,000

Cevap

The Capital Employed of Alhaji Usman Trading Company is ₦3,750,000\text{₦}3,750,000.
The value stating ₦3,750,000\text{₦}3,750,000 is correct because Capital Employed equals Fixed Assets plus Working Capital. Fixed Assets are Premises (₦2,500,000\text{₦}2,500,000) + Equipment (₦800,000\text{₦}800,000) = ₦3,300,000\text{₦}3,300,000. Working Capital is Current Assets (Stock ₦450,000\text{₦}450,000 + Debtors ₦250,000\text{₦}250,000 + Cash ₦100,000\text{₦}100,000 = ₦800,000\text{₦}800,000) minus Current Liabilities (Creditors ₦200,000\text{₦}200,000 + Overdraft ₦150,000\text{₦}150,000 = ₦350,000\text{₦}350,000), yielding ₦450,000\text{₦}450,000. Therefore, Capital Employed = ₦3,300,000+₦450,000=₦3,750,000\text{₦}3,300,000 + \text{₦}450,000 = \text{₦}3,750,000.

Adım Adım Çözüm

1
Calculate total Fixed Assets
Fixed Assets = Premises (₦2,500,000\text{₦}2,500,000) + Equipment (₦800,000\text{₦}800,000) = ₦3,300,000\text{₦}3,300,000
Fixed assets represent long-term capital assets used in operations.
2
Calculate total Current Assets
Current Assets = Stock (₦450,000\text{₦}450,000) + Trade Debtors (₦250,000\text{₦}250,000) + Cash at Bank (₦100,000\text{₦}100,000) = ₦800,000\text{₦}800,000
Current assets comprise short-term resources convertible to cash within an accounting year.
3
Calculate total Current Liabilities
Current Liabilities = Trade Creditors (₦200,000\text{₦}200,000) + Bank Overdraft (₦150,000\text{₦}150,000) = ₦350,000\text{₦}350,000
Current liabilities are short-term obligations due within one year.
4
Calculate Working Capital
Working Capital = Current Assets (₦800,000\text{₦}800,000) - Current Liabilities (₦350,000\text{₦}350,000) = ₦450,000\text{₦}450,000
Working capital measures net operational liquidity.
5
Calculate Capital Employed
Capital Employed = Fixed Assets (₦3,300,000\text{₦}3,300,000) + Working Capital (₦450,000\text{₦}450,000) = ₦3,750,000\text{₦}3,750,000
Capital Employed is the total capital actively invested in running the business.

Anahtar Kavram

Capital Employed Calculation
Bu soruyu puanla

Konular

Capital Structure Calculations (Working Capital, Capital Employed, Capital Owned)

Bu konudan daha fazla soru