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    Carle

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    akiko
    Carle's Ltd's statement of financial position as of December 31, 2021 showed a working capital deficit of $634,000 due to current assets of $1215 being less than current liabilities of $1849. Total assets of $10185 plus current assets exceeded total liabilities of $6475, giving net assets of $4925. Although the company had an overall asset surplus, the working capital deficit indicates it needs a bank loan to continue operating, and since it sells demanded food and clothing, the bank could offer a $25,000 loan as the company's income is guaranteed.

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    Carle

    Uploaded by

    akiko
    76 views1 page
    Carle's Ltd's statement of financial position as of December 31, 2021 showed a working capital deficit of $634,000 due to current assets of $1215 being less than current liabilities of $1849. Total assets of $10185 plus current assets exceeded total liabilities of $6475, giving net assets of $4925. Although the company had an overall asset surplus, the working capital deficit indicates it needs a bank loan to continue operating, and since it sells demanded food and clothing, the bank could offer a $25,000 loan as the company's income is guaranteed.

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    Carle's Ltd's statement of financial position as of December 31, 2021 showed a working capital deficit of $634,000 due to current assets of $1215 being less than current liabilities of $1849. Total assets of $10185 plus current assets exceeded total liabilities of $6475, giving net assets of $4925. Although the company had an overall asset surplus, the working capital deficit indicates it needs a bank loan to continue operating, and since it sells demanded food and clothing, the bank could offer a $25,000 loan as the company's income is guaranteed.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    76 views1 page

    Carle

    Uploaded by

    akiko
    Carle's Ltd's statement of financial position as of December 31, 2021 showed a working capital deficit of $634,000 due to current assets of $1215 being less than current liabilities of $1849. Total assets of $10185 plus current assets exceeded total liabilities of $6475, giving net assets of $4925. Although the company had an overall asset surplus, the working capital deficit indicates it needs a bank loan to continue operating, and since it sells demanded food and clothing, the bank could offer a $25,000 loan as the company's income is guaranteed.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Carle’s Ltd’s statement of financial position Prep-b

    M.Tsolmon

    1. Working capital = Current asset-current liability

    -634=1215-1849 Worling capital= -634

    2.((Total Fixed Assets + Total Current Assets) – (Total Current Liabilities + Total Long Term Liabilities))=
    Net assets.

    (10185+1215)-(1849+4626)=4925 Net assets=4925

    3. If we look at the statement of financial position for Carle Ltd, 31 December 2021,

    Total assets are 10183>Total liability is 6475. Therefore the bank offers 25$ to this Ltd is guaranteed.
    But the working capital deficit is -634000$ in a year, so this company needs a bank loan. And in this case,
    mentioned they sell food and clothes. These are all demanded things so this company’s income is
    guaranteed. Therefore bank could offer them.

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