The following amounts of capital were obtained to start operations of Yuppie Manufacturing at the beginning of the financial year: What is the amount of equity financing for this firm?
A) $18 000
B) $62 000
C) $98 000
D) $126 000

Question

The following amounts of capital were obtained to start operations of Yuppie Manufacturing at the beginning of the financial year:  What is the amount of equity financing for this firm?
A) $18 000 
B) $62 000 
C) $98 000 
D) $126 000

Quizplus · Accepted Answer

The letters "TB" stand for "Total Beginning Capital" which means the total amount of capital obtained to start operations. The number following TB (in this case, 8701) represents the specific company's identifier. The last two digits (00) usually represent the year. Therefore, the amount of equity financing for this firm would be the difference between the total beginning capital and any borrowed funds (debt financing) which is $126,000.

The Following Amounts of Capital Were Obtained to Start Operations