Multiple choice general knowledge

Calculate the Net Assets employed for a business with the following balances: Fixed Assets $ 270,000;Stocks $65,000;Bank Overdraft $115,000;Trade Debtors $150,000;Trade Creditors $80,000

  1. $680,000
  2. $405,000
  3. $290,000
  4. $20,000
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Net Assets Employed = Total Assets - Current Liabilities. Total Assets = Fixed Assets (270,000) + Stocks (65,000) + Trade Debtors (150,000) = 485,000. Current Liabilities = Bank Overdraft (115,000) + Trade Creditors (80,000) = 195,000. Net Assets = 485,000 - 195,000 = 290,000.

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