Ojo's Balance sheet as at 31st Dec 2006 \[ \begin{array}{|l|r|l|r|} \hline & \#

Ojo's Balance sheet as at 31st Dec 2006 \[ \begin{array}{|l|r|l|r|} \hline & \#
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Ojo's Balance sheet as at 31st Dec 2006 \[ \begin{array}{|l|r|l|r|} \hline & \# & & \# \\ \hline Capital & 10,000 & Land \& building & 12,000 \\ Drawings & 600 & Fittings & 850 \\ & 9,400 & Motor vans & 1,600 \\ Profit & 6,200 & Cash & 2,150 \\ & 15,600 & Prepayments & 700 \\ Creditors & 1,800 & Debtors & 100 \\ & 17,400 & & 17,400 \\ \hline --- & & & \\ \hline \end{array} \] What is Ojo's working capital?

Explanation

Working capital = Current Assets - Current Liabilities. Current Assets = Cash (2,150) + Prepayments (700) + Debtors (100) = 2,950. Current Liabilities = Creditors (1,800). Working capital = 2,950 - 1,800 = 1,150. Correct option is D.

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Ojo's Balance sheet as at 31st Dec 2006 \[ \begin{array}{|l|r|l|r|} \hline
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