Chapter 108 Financial Management Q&A (1 of 9) Sample Questions
1. ABC pharmacy has following figures appearing on its balance sheet.
Cost of goods sold $500,000
Beginning inventory $200,000
Ending inventory $220,000
Total current assets $150,000
Total fixed assets $40,000
Total liabilities $75,000
Net worth of ABC pharmacy is?
Cost of goods sold $500,000
Beginning inventory $200,000
Ending inventory $220,000
Total current assets $150,000
Total fixed assets $40,000
Total liabilities $75,000
Net worth of ABC pharmacy is?
- A. $195,000
- B. $225,000
- C. $115,000
- D. $75,000
Ans:
C
Tips: Net worth = Total assets – total liabilities
($150,000+$40,000) - $75,000 = $115,000
($150,000+$40,000) - $75,000 = $115,000