1. Complete the balance sheet for the business for 2016 and 2017. 2. In which year...

1. Complete the balance sheet for the business for 2016 and 2017.

2. In which year do you think the balance sheet is better?

	2016		2017
Fixed Assets
Premises	60,000		74,000
Equipment	14,000		24,000

Current Assets
Stocks	2,000		3,000
Debtors	5,000		3,000
Cash at Bank	5,000		2,000

Current Liabilities
Overdraft	3,000		3,000
Creditors	3,000		3,000

Working Capital
Net Assets
Financed by:
Owners Capital		40,000		65,000
Loan		40,000		35,000
Capital Employed

Expert Solution



	2016		2017
Fixed Assets
Premises	60,000		74,000
Equipment	14,000		24,000
		74,000		98,000
Current Assets
Stocks	2,000		3,000
Debtors	5,000		3,000
Cash at Bank	5,000		2,000
		12,000		8,000
Current Liabilities
Overdraft	3,000		3,000
Creditors	3,000		3,000
		6,000		6,000
Working Capital		6,000		2,000
Net Assets		80,000		100,000
Financed by:
Owners Capital		40,000		65,000
Loan		40,000		35,000
Capital Employed		80,000		100,000


as per financial view , In 2016 balance sheet has less loan as compared to 2017 which makes this entity more financial sound in .
further, the working capital and owner capital has reduced in 2017 which definetely reduced the area of operation of entity.
therefore we can say balance sheet of 2016 is better than 2017.



	2016		2017
Fixed Assets
Premises	60,000		74,000
Equipment	14,000		24,000
		74,000		98,000
Current Assets
Stocks	2,000		3,000
Debtors	5,000		3,000
Cash at Bank	5,000		2,000
		12,000		8,000
Current Liabilities
Overdraft	3,000		3,000
Creditors	3,000		3,000
		6,000		6,000
Working Capital		6,000		2,000
Net Assets		80,000		100,000
Financed by:
Owners Capital		40,000		65,000
Loan		40,000		35,000
Capital Employed		80,000		100,000


as per financial view , In 2016 balance sheet has less loan as compared to 2017 which makes this entity more financial sound in .
further, the working capital and owner capital has reduced in 2017 which definetely reduced the area of operation of entity.
therefore we can say balance sheet of 2016 is better than 2017.

ekkarill92 answered 1 hour ago

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