JAMB Past Questions and Answers - Page 40

From the diagram above, fixed assets are made up of land and building, fittings and motor van. Hence we have;

12,000 + 850 + 1600 = 14,450

10% = \(\frac{10}{100}\) x 14,450 = 1445

14,450 - 1445 = 13,005

Owner's Equity = Assets - Liabilities

Assets = 26,000,000 + 5,000,000 + 22,000,000 = 53,000,000

Liabilities = 4,000,000 + 11,000,000 = 15,000,000

Equity  = 53,000,000 - 53,000,000 = 38,000,000

Net working capital is the difference between a company's total current assets and current liabilities. Net Working Capital = Current Assets - Current Liabilities

Current assets = 5,000,000 + 22,000,000 = 27,000,000

Current liabilities = 11,000,000

Net working capital = 27,000,000 - 11,000,000 = 16,000,000

Trade and aids to trade boost economic activities in an economy, in a way that when people are involved in productive ventures, it leads to the viability of the economy.

Trade involves the buying and selling of goods and services, for a compensation called price while aids to trade are the activities which are necessary for smooth flow of goods from producers to consumers.

Natural resources have to do with the supply, demand, and allocation of the Earth's natural resources that can be used for economic production or consumption. They are subdivided into four categories: mineral and energy resources, soil resources, water resources and biological resources