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Silverware Company Ltd reports the following balance sheet information for 2014:
1 January 2014 31 December 2014
Assets $600 000 $700 000
Liabilities $120 000 $140 000
Problem 1: Assuming the capital contribution made by the owners during 2014 was $30 000 and Drawings were $120 000, the Net Profit for 2014 must have been as follows:
(a) $120 000
(b) $140 000
(c) $160 000
(d) $170 000
(e) $180 000
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