Question

Refer the data in the table below:

$\begin{array}{ccc}\text{Particulars}& 2004-05& 2005-06\\ \text{Shareholders' funds}& 10,00,000& 10,00,000\\ \text{Trade payables}& 2,40,000& 1,80,000\\ \text{Short term debt}& 8,00,000& 6,00,000\\ \text{Long term debt}& 9,02,000& 7,74,000\\ & 29,42,000& 25,54,000\\ \text{Fixed Assets}& 26,20,000& 22,50,000\\ \text{Trade Receivables}& 2,50,000& 2,75,000\\ \text{Cash}& 72,000& 29,000\\ & 29,42,000& 25,54,000\end{array}$

Calculate the % change in Fixed Assets?

• A. Decrease of 10.19%
• B. Decrease of 14.19%
• C. Decrease of 14.12 %
• D. None of these

Answer 1

The correct option is C

Decrease of 14.12 %

% Change in Fixed Assets = $\frac{22,50,000-26,20,000}{26,20,000}=\frac{-3,70,000}{26,20,000}=-0.1412$ i.e decrease of 14.12%