In: Accounting
Balance Sheet as at year end 31st Dec
2005 |
2006 |
2007 |
2008 |
2009 |
|
CAPITAL AND |
|||||
LIABILITIES: |
|||||
Equity share capital |
400,000 |
600,000 |
500,000 |
400,000 |
600,000 |
Long term loan |
500,000 |
250,000 |
300,000 |
400,000 |
300,000 |
Sundry creditors |
200,000 |
300,000 |
350,000 |
340,000 |
250,000 |
Short term loan |
50,000 |
40,000 |
60,000 |
115,000 |
50,000 |
ASSETS: |
|||||
Land and Building |
300,000 |
500,000 |
600,000 |
700,000 |
450,000 |
Furniture |
600,000 |
450,000 |
400,000 |
400,000 |
500,000 |
Cash at bank |
50,000 |
60,000 |
70,000 |
50,000 |
70,000 |
Stock |
140,000 |
150,000 |
100,000 |
80,000 |
120,000 |
Prepaid expenses |
60,000 |
30,000 |
40,000 |
25,000 |
60,000 |
You are required to carry out the following analyses;
Common size balance sheet for the five years. and interpret. (5 marks
Balance Sheet as at year end 31st Dec | |||||
2005 | 2006 | 2007 | 2008 | 2009 | |
CAPITAL AND | |||||
LIABILITIES: | |||||
Equity share capital | 400,000 | 600,000 | 500,000 | 400,000 | 600,000 |
Long term loan | 500,000 | 250,000 | 300,000 | 400,000 | 300,000 |
Sundry creditors | 200,000 | 300,000 | 350,000 | 340,000 | 250,000 |
Short term loan | 50,000 | 40,000 | 60,000 | 115,000 | 50,000 |
ASSETS: | |||||
Land and Building | 300,000 | 500,000 | 600,000 | 700,000 | 450,000 |
Furniture | 600,000 | 450,000 | 400,000 | 400,000 | 500,000 |
Cash at bank | 50,000 | 60,000 | 70,000 | 50,000 | 70,000 |
Stock | 140,000 | 150,000 | 100,000 | 80,000 | 120,000 |
Prepaid expenses | 60,000 | 30,000 | 40,000 | 25,000 | 60,000 |
Common Size Balance Sheet as at year end 31st Dec | |||||
2005 | 2006 | 2007 | 2008 | 2009 | |
CAPITAL AND | |||||
LIABILITIES: | |||||
Equity share capital | 35% | 50% | 41% | 32% | 50% |
Long term loan | 43% | 21% | 25% | 32% | 25% |
Sundry creditors | 17% | 25% | 29% | 27% | 21% |
Short term loan | 4% | 3% | 5% | 9% | 4% |
ASSETS: | |||||
Land and Building | 26% | 42% | 50% | 56% | 38% |
Furniture | 52% | 38% | 33% | 32% | 42% |
Cash at bank | 4% | 5% | 6% | 4% | 6% |
Stock | 12% | 13% | 8% | 6% | 10% |
Prepaid expenses | 5% | 3% | 3% | 2% | 5% |