ABC PLC Consolidated Balance Sheet On December 31, 2019 Working capital Non-current assets Intangible assets...

ABC PLC Consolidated Balance Sheet On December 31, 2019
Working capital
Non-current assets
Intangible assets	2,167
Tangible assets	7,937
Investments	74
	10,178
Current Assets
Inventory	3,739
Account receivable	6,242
cash	1,756
	11,737
Current liabilities
Account payable: Amounts due within one year	(5,023)
Net current assets	6,714
Total assets minus current liabilities	1,689.2
Account payable: Amounts due after more than one year	(4,884)
Provision for liabilities and fees	(4,235)
Net assets	7,773
Capital and reserves	-
Capital required	-
common stocks	387
Convertible preferred stocks	3,372
Transferable and redeemable preferred stocks	-
	3,759
Issuing premium account	928
capital redemption reserve	4,619
The shares of the company	(6.4)
Profit and Loss Account	(1,802)
Shareholders' equity
Equity	4,068
Rights of non-shareholders partners	3,372
	7,440
The company's portion in other companies	333
	7,773

Required:

1. Review ABC PLC’ balance sheet and identify how the format of this financial statement provides useful information.

2. Identify at least three differences in balance sheet reporting between British and U.S. firms, as shown in ABC PLC’ balance sheet.

3. Calculate at least three financial ratios using the information provided above for the balance sheet.

Solutions

Expert Solution

Answer

Here the company used Vertical Format or Report format. The benefits are

Vertical analysis simplifies the correlation between single items on a balance sheet.
It is a relatively more potent tool than horizontal analysis, which shows the corresponding changes in the finances of a particular unit/ account/department over a certain period of time.
We can show balance sheet amounts of previous years in this balancesheet.

The difference in balancesheet format of British and U S

American Compnies following a T format(Account Format)

British companies following a vertical format

3. a) Current Ratio

Current asset/ Current liabilities

=11737/3759

= 3.1

b)Debt to Fixed asset ratio

Liabilities/ Fixed asset

c)Quick ratio

Current asset - Inventory / Current liabilities

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

ABC PLC Consolidated Balance Sheet at December 31, 2019 CAPITAL EMPLOYED Fixed Assets: Intangible Assets 216,7...

ABC PLC Consolidated Balance Sheet at December 31, 2019 CAPITAL EMPLOYED Fixed Assets: Intangible Assets 216,7 M Tangible Assets 793,7 Investments 7,4 1,017,8 Current Assets Stock 373,9 Debtors 624,2 Cash 175,6 1,173,7 Current Liabilities Creditors: amounts falling due within one year (502,3) Net current assets 671,4 Total assets less current liabilities 1,689.2 Creditors: amounts falling due after more than one year (488,4) Provisions for liabilities and charges (423,5) Net Assets 777,3 CAPITAL AND RESERVES Called up share capital Ordinary shares...

SEAGATE TECHNOLOGY PLC Consolidated Balance Sheet June 28, 2019 ($ millions) Current assets Cash and cash...

SEAGATE TECHNOLOGY PLC Consolidated Balance Sheet June 28, 2019 ($ millions) Current assets Cash and cash equivalents $2,220 Accounts receivable, net 989 Inventories 970 Other current assets 184 Total current assets 4,363 Property, equipment and leasehold improvements, net 1,869 Goodwill 1,237 Other intangible assets, net 111 Deferred income taxes 1,114 Other assets, net 191 Total assets $8,885 Current liabilities Accounts payable $1,420 Accrued employee compensation 169 Accrued warranty 91 Accrued expenses 552 Total current liabilities 2,232 Long-term accrued warranty 104...

Presented below is the classified balance sheet for one of businesses: ABC PLC Consolidated Balance Sheet...

Presented below is the classified balance sheet for one of businesses: ABC PLC Consolidated Balance Sheet at December 31, 2019 CAPITAL EMPLOYED Fixed Assets: Intangible Assets 216,7 M Tangible Assets 793,7 Investments 7,4 1,017,8 Current Assets Stock 373,9 Debtors 624,2 Cash 175,6 1,173,7 Current Liabilities Creditors: amounts falling due within one year (502,3) Net current assets 671,4 Total assets less current liabilities 1,689.2 Creditors: amounts falling due after more than one year (488,4) Provisions for liabilities and charges (423,5) Net...

The Traverse Recreation Company's balance sheet as of December 31, 2019 is given below: Assets Current...

The Traverse Recreation Company's balance sheet as of December 31, 2019 is given below: Assets Current Assets: Cash $ 46,200 Accounts Receivable (net) 260,000 Raw Materials Inventory (4,500 yards) 11,250 Finished Goods Inventory (1,500 units) 32,250 Total current assets $ 349,700 Property and Equipment: Buildings and Equipment 900,000 Accumulated Depreciation (292,000) Plant and Equipment (net) 608,000 Total Assets $ 957,700 Liabilities and Stockholder's Equity Current Liabilities: ...

SAR Research Associates reports the following intangible assets on its December 31 balance sheet: Intangible Asset...

SAR Research Associates reports the following intangible assets on its December 31 balance sheet: Intangible Asset Net Carrying Value Remaining Life Franchise 857,000 5 years Patent 410,000 3 years Trade Name 3,955,000 Total 5,222,000 It does not use a seperate accumulated amortization account for the intangible assets. Management provided the following information related to intangible assets it obtained during the current year: -Franchise: Due to current market conditions, products sold under the franchise have experienced significant sales declines from possible...

Prepare a balance sheet as of December 31, 2019. BUSINESS SOLUTIONS Balance Sheet December 31, 2019...

Prepare a balance sheet as of December 31, 2019. BUSINESS SOLUTIONS Balance Sheet December 31, 2019 Assets Cash Accounts receivable Prepaid insurance Prepaid insurance Prepaid rent Office equipment Accumulated depreciation—Office equipment 0 Accumulated depreciation—Computer equipment Computer equipment 0 Total Assets 0 Liabilities Accounts payable Wages payable Unearned computer services revenue Total Liabilities 0 Equity Retained earnings Common stock Total equity $0 Total Liabilities and Equity $0 After the success of the company’s first two months, Santana Rey continues to operate...

The intangible assets section of Pronghorn Corporation’s balance sheet at December 31, 2022, is presented here....

The intangible assets section of Pronghorn Corporation’s balance sheet at December 31, 2022, is presented here. Patents ($83,100 cost less $7,400 amortization) $75,700 Copyrights ($37,000 cost less $23,100 amortization) 13,900 Total $89,600 The patent was acquired in January 2022 and has a useful life of 10 years. The copyright was acquired in January 2016 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2023. Jan. 2 Paid $63,000 legal costs...

For December 31, 20X1, the balance sheet of Baxter Corporation was as follows: Current Assets...

For December 31, 20X1, the balance sheet of Baxter Corporation was as follows: Current Assets Liabilities Cash $ 17,000 Accounts payable $ 19,000 Accounts receivable 22,000 Notes payable 27,000 Inventory 32,000 Bonds payable 57,000 Prepaid expenses 12,700 Fixed Assets Stockholders’ Equity Gross plant and equipment $ 257,000 Preferred stock $ 27,000 Less: Accumulated depreciation 51,400 Common stock 62,000 Paid in Capital 32,000 Net plant and equipment $ 205,600 Retained earnings 65,300 Total assets $ 289,300 Total liabilities and stockholders’...

For December 31, 20X1, the balance sheet of Baxter Corporation was as follows: Current Assets...

For December 31, 20X1, the balance sheet of Baxter Corporation was as follows: Current Assets Liabilities Cash $ 30,000 Accounts payable $ 32,000 Accounts receivable 35,000 Notes payable 40,000 Inventory 45,000 Bonds payable 70,000 Prepaid expenses 14,000 Fixed Assets Stockholders’ Equity Gross plant and equipment $ 270,000 Preferred stock $ 40,000 Less: Accumulated depreciation 54,000 Common stock 75,000 Paid in Capital 45,000 Net plant and equipment $ 216,000 Retained earnings 38,000 Total assets $ 340,000 Total liabilities and stockholders’...

For December 31, 20X1, the balance sheet of Baxter Corporation was as follows: Current Assets...

For December 31, 20X1, the balance sheet of Baxter Corporation was as follows: Current Assets Liabilities Cash $ 13,000 Accounts payable $ 15,000 Accounts receivable 18,000 Notes payable 23,000 Inventory 28,000 Bonds payable 53,000 Prepaid expenses 12,300 Fixed Assets Stockholders’ Equity Gross plant and equipment $ 253,000 Preferred stock $ 23,000 Less: Accumulated depreciation 50,600 Common stock 58,000 Paid in Capital 28,000 Net plant and equipment $ 202,400 Retained earnings 73,700 Total assets $ 273,700 Total liabilities and stockholders’...

Subjects