Capital Employed Assessment 1 Q1.3 Credit Control
PST99
Registered Posts: 2
Can someone help me, I can't understand the figure for capital employed.
Capital employed = Total assets - current liabilities
Or
Capital employed = Non current liabilities + Equity.
Total assets = £6646
Total Equity = £276
Non current liabilities = £5500
Current liabilities = £870 ( inc £400 borrowings)
Therefore capital employed should be £5776? but its £6176. I'm not sure why the current borrowing of £400 is excluded when calculating the capital employed?
Capital employed = Total assets - current liabilities
Or
Capital employed = Non current liabilities + Equity.
Total assets = £6646
Total Equity = £276
Non current liabilities = £5500
Current liabilities = £870 ( inc £400 borrowings)
Therefore capital employed should be £5776? but its £6176. I'm not sure why the current borrowing of £400 is excluded when calculating the capital employed?
0
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