Question: Ben has $2000 for his business operations costs. He orders goods from his supplier and writes them a cheque for $600. His debtor pays him $800 from the purchases they had made on credit. Mr. Ben then decides to do equipment maintenance and spends $1200 on the whole operation. How much money is Mr. Ben remaining with?
Solution:
When Mr. Ben writes the cheque, he remains with $2000-$600 = $1400
His debtor pays him $800, increasing his operation capital to $1400+$800 = $2200
He spends $1200, remaining $2200-$1200 = $1000 for business operations cost after maintenance.
Answer: 1000