Question 3.1: The following summary balance sheets relate to a business.

Accounting for Business Students

The following summary balance sheets relate to a business.

	1 January 2017	31 December 2017
	$	$
Non-current assets	600,000	650,000
Current assets	300,000	350,000
Total assets	900,000	1,000,000
Current liabilities	150,000	175,000
Equity	750,000	825,000
Total equity and liabilities	900,000	1,000,000

During the year, the owners injected a further $50,000 into the business and withdrew regular drawings estimated to be of the order of $10,000 per month. How much profit do you think was made in the course of the year?

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