Given the following values: Cash = $1,000, Inventories = $4,000, Debtors = $5,000, and Capital plus Liabilities = $15,000, what is the total amount of fixed assets?

Explanation

The total assets must equal the sum of capital and liabilities, which is $15,000. Total assets are the sum of cash, inventories, debtors, and fixed assets. Adding cash ($1,000), inventories ($4,000), and debtors ($5,000) gives $10,000. Therefore, fixed assets must be $15,000 - $10,000 = $5,000.