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Zorluk: OrtaBalance Sheet Classification of Assets and Liabilities

The following financial information was extracted from the ledger of Highlife Stores as at 31 December 2025:

Account ItemAmount (₦)
Plant and Machinery450,000
Trade Debtors85,000
Bank Overdraft30,000
Closing Inventory65,000
Trade Creditors45,000
Prepaid Insurance10,000
Accrued Rent15,000

What is the working capital of Highlife Stores as at 31 December 2025?

  1. ₦70,000Cevap
  2. B
    ₦80,000
  3. C
    ₦100,000
  4. D
    ₦520,000

Cevap

The working capital of Highlife Stores is ₦70,000.
Working capital is calculated as total current assets minus total current liabilities. Summing trade debtors (₦85,000), closing inventory (₦65,000), and prepaid insurance (₦10,000) gives total current assets of ₦160,000. Summing bank overdraft (₦30,000), trade creditors (₦45,000), and accrued rent (₦15,000) gives total current liabilities of ₦90,000. Deducting current liabilities from current assets produces ₦70,000.

Adım Adım Çözüm

1
Identify and sum all Current Assets
Current Assets = Trade Debtors (₦85,000) + Closing Inventory (₦65,000) + Prepaid Insurance (₦10,000) = ₦160,000.
Current assets comprise short-term resources convertible to cash within one year. Plant and Machinery is a non-current asset and must be excluded.
2
Identify and sum all Current Liabilities
Current Liabilities = Bank Overdraft (₦30,000) + Trade Creditors (₦45,000) + Accrued Rent (₦15,000) = ₦90,000.
Current liabilities are short-term obligations payable within one year, including bank overdrafts, trade creditors, and accrued expenses.
3
Compute Working Capital (Net Current Assets)
Working Capital = Total Current Assets - Total Current Liabilities = ₦160,000 - ₦90,000 = ₦70,000.
Working capital measures short-term liquidity by finding the difference between current assets and current liabilities.

Anahtar Kavram

Working Capital Calculation (Current Assets minus Current Liabilities)
Tahmini Süre:1m 30s
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Konular

Balance Sheet Classification of Assets and Liabilities