A-LevelAccountingPreparation of financial statements9706/12 · May/June 2010 · Q171 Mark
A company is set up with an authorised share capital of $3 million. It plans to purchase immediately a factory for $1 million. Preliminary expenses will be $100 000 and the immediate requirement for working capital will be $800 000. It will also require new equipment costing $600 000 in 12 months time. What is the minimum amount the company needs to raise now?
A$1 000 000
B$1 900 000
C$2 500 000
D$3 000 000
✓ Correct answer
B: $1 900 000
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