Section B:
Using the financial statements of XYZ Furnishings (below), comment on your interpretation of the financial health of the company.
There is a maximum of 10 marks available for this section, four marks for your knowledge and understanding of the financial statements, four marks for your analysis and evaluation and 2 marks for your communication.
|
Statement of Financial Position |
||
|
Assets |
||
|
Current |
||
|
Cash and equivalents |
220 |
|
|
Trade receivables |
8,420 |
|
|
Other receivables |
10 |
|
|
Inventories |
1,000 |
|
|
ST Investments |
160 |
|
|
Non-Current |
||
|
Land and Buildings |
14,644 |
|
|
Fix and Fit |
708 |
|
|
Plant |
15,012 |
|
|
Vehicles |
1,235 |
|
|
LT Investments |
1,500 |
|
|
Total Assets |
42,909 |
|
|
Liabilities |
||
|
Current |
||
|
Trade payable |
6,580 |
|
|
Overdraft |
150 |
|
|
ST Loans |
1,310 |
|
|
Taxation Due |
500 |
|
|
Dividend |
200 |
|
|
Non-Current |
||
|
Loans |
8,000 |
|
|
Total Liabilities |
16,740 |
|
|
Net Assets |
26,169 |
|
|
Equity |
26,169 |
|
|
Retained Earnings |
10,063 |
|
|
Shareholders’ Equity |
16,106 |
|
Income Statement |
||
|
Sales |
60,600 |
|
|
COGS |
34,020 |
|
|
Gross Profit |
26,580 |
|
|
Operating Expenses |
15,256 |
|
|
Operating Profit |
11,324 |
|
|
Interest received |
559 |
|
|
Tax paid |
1,026 |
|
|
Financing costs |
3,050 |
|
|
Profit for the period |
7,807 |
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