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Uju Nig. Ltd. Balance Sheet (Extract)Which of the following is true of Uju Nig.L...


Question

Uju Nig. Ltd. Balance Sheet (Extract)

  
Capital200,000Land and building250,000
Net profit50,000Stock20,000 
5% debenture 100,000Debtors 50,000 
Creditors   80,000Bank 110,000
 430,000 430,000

Which of the following is true of Uju Nig.Ltd?

Options

A) It is a highly geared company

B) It has no liquidity problem in the short term

C) It is adequately secured in fixed assets

D) It's working capital is zero

The correct answer is D.


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