MGT 101 Assignment 1 Solution 2018

Solution:

·        Sales Revenue

Gross Profit =Sale – cost of goods sold

40000=Sales- 55000

40000+55000=Sale

Sale Revenue =95000

·        Fixed Assets

Fixed Assets = Plants and machinery +land & building + Furniture and Fixture

Fixed Assets = 750000+840000+170000= 1760000

·        Current Assets

Current Assets= cash at bank + Income earned expected to be received within 3 months + Closing stock

Current Assets = 45,000+10000+20,000

Current Assets = 75000

·        Current Liabilities

Current Liabilities’ = Office expenses incurred expected to be paid within 3 months +Sundry Creditors

Current liabilities = 15000+25000

Current Liabilities’ = 40000

·        Selling Expense

Selling Expense = Salaries of marketing staff + Advertisement Expense

Selling Expense =150000+65000

Selling Expense =215000

·         Capital to be shown in balance sheet as on 31st December 2017

 Capital = Capital +Net Profit

Capital =500000+46000

Capital to be Shown in balance sheet =546000