The following is a summary of the assets and liabilities of Odika Enterprises for the year ended December 31st 2000. N motor vehicle 60,000 fixtures & fitti...

Answer Details

Odika Enterprises - year ended 31st December 2000

Fixed assets = 75,000 + 65,000 + 60,000 + 60,000 + 18,000 = N278,000

Current assets = 20,000 + 10,000 + 8,000 + 6,000 + 6,000 = N50,000

Current liabilities = 12,000 + 5,000 + 3,500 = N20,500

(a)(i) Capital owned = Total assets - External liabilities

= (278,000 + 50,000) - 20,500 = 328,000 - 20,500 = N307,500

(a)(ii) Fixed assets = N278,000

(a)(iii) Working capital = Current assets - Current liabilities

= 50,000 - 20,500 = N29,500

(b) Five sources of capital available to a public limited company

1. Issue of ordinary (equity) shares
2. Issue of preference shares
3. Issue of debentures
4. Long-term loans from banks and financial institutions
5. Ploughed-back (retained) profits and reserves