JAMB - Commerce (2025 - No. 59)
Use the information below to answer questions below
|
# |
|
|
Sales |
50,000.00 |
|
Debtors |
10,000.00 |
|
Cash in hand |
5,000.00 |
|
Opening stock |
30,000.00 |
|
Creditors |
8,000.00 |
|
Purchases |
16,000.00 |
|
Overdraft |
12,000.00 |
|
Closing stock |
10,000.00 |
Calculate the working capital
#35,000.00
#14,000.00
#5,000.00
#20,000.00
Explanation
Working capital is calculated as Current Assets - Current Liabilities.
From the given data, Current Assets = Debtors + Cash in hand + Closing stock = 10,000 + 5,000 + 10,000 = 25,000.
Current Liabilities = Creditors + Overdraft -8,000 +12,000 -20,000.
Therefore, Working Capital = 25,000 - 20,000 = 5,000.
From the given data, Current Assets = Debtors + Cash in hand + Closing stock = 10,000 + 5,000 + 10,000 = 25,000.
Current Liabilities = Creditors + Overdraft -8,000 +12,000 -20,000.
Therefore, Working Capital = 25,000 - 20,000 = 5,000.
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