Question
How does the purchase of a new machinery to expand
production capacity affect the working capital of a company ABC Limited?Solution
Working capital is the difference between the current assets and current liabilities. The purchase of fixed assets can be done by 2 ways: • Cash payment – this would reduce cash and therefore the current assets, thereby reducing the working capital • Credit purchase – this would increase the creditors and therefore the current liabilities, thereby again reducing the working capital. Apart from the impact on working capital, this purchase will also increase the Fixed Assets and therefore the total assets of the company.
A shopkeeper sold an article at a gain of 20%. Had he bought it for 20% less than the original cost and sold it for ₹10 less, he would have gained 25%...
Table given below shows the cost price and selling price of five different articles.
The cost price of an article is 30% less than its selling price. For how much profit was it sold? (Round off up to 2 decimal plac...
The difference between selling an item at an 18 percent loss and at a 14 percent profit is Rs. 1000. At what price should the item be sold to make a pr...
A man spent 66% of his income in May. If his savings is increased by 20% in June and becomes Rs. 6120, then find the income of man in May.
Sushil sold an item at 6% profit. Had he sold it for Rs. 5,760 less, he would have incurred a loss of 10%. Find the cost price of the item.Â
A shopkeeper bought three items: a smartphone for Rs. 14x, a camera for Rs. 10x, and a laptop for Rs. 16x. The average price of these items is Rs. 60,00...
After selling 25 kg of rice, Aman suffered a loss equal to the selling price of 8 kg of rice. If he purchased the rice for Rs. 900, find the selling pri...
A trader marked an article 70% above its cost price and sold it after allowing a discount of 40%. If the transaction resulted in a profit of Rs. 40, the...
The marked price of item A is Rs. 90 less than the selling price of item B. The marked price of item B is 80% more than the selling price of item A. If ...
