(a) Captial owned by WAZOBIA ENTERPRISES:
Capital 18,000
Add Net profit 1,700
Capital owned 19,700
(b) Working capital: Current assets:
Stock 31st Dec 8,000
Debtors 5,000
Cash in hand 7,000
20,000 Current liabilities:
Creditors 3,000
Bank overdrafts 1,200
One year co-op loan 4,100
8,300
Working Capital = Current assets - current liabilities
20,000 - 8,300 = 11,700
(c) Current liabilities;
creditors 3000
Bank overdraft 1,200
corporative loan 4,100
8,300
(d) Fixed assets:
Fixtures 1,000
Typewriter 4,500
Furniture 2,500
8,000
(e) Capital employed: fixed capital
Fixture 1,000
Typewriter 4,500
Furniture 2,500 8,000 Add current capital;
Stock 31st Dec. 8,000
Debtors 5,000
Cash in hand 7,000 20,000
28,000