$000’s Sales Revenue3000 Cost Of Sales? Gross Profit1500 Expenses? Net Profit (b4 I&T)455 Interest155 Tax120 Net Profit (after I&T)? Dividends80 Retained.

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$000’s Sales Revenue3000 Cost Of Sales? Gross Profit1500 Expenses? Net Profit (b4 I&T)455 Interest155 Tax120 Net Profit (after I&T)? Dividends80 Retained Profit? Profit & Loss Account for Unknown Ltd. Year ending Apr

The Balance Sheet What a business owns (assets) What a business owes (liabilities) Net Assets (Assets - Liabilities) Sources of Finance. (Where the money came from to acquire their Net Assets) It shows the value liquidity gearing of a business on a specific date Be careful of Long-term Liabilities, They are USUALLY Sources of Finance

FIXED ASSETS Buildings, Machinery etc CURRENT ASSETS Stock, Cash, Debtors etc Balance Sheet for HooNo’s plc, as at 23 rd September 2009 CURRENT LIABILITIES Overdraft, Creditors etc WORKING CAPITAL = Current Assets – Current Liabilities NET ASSETS = FA + CA - CL LONG TERM LIABILITIES Debentures, Loans etc CAPITAL & RESERVES Shares, Retained Profit Personal Finance etc NET CAPITAL = LTL + C&R

$000’s Fixed Assets3000 Current Assets? ?1000 Working Capital? Net Assets Employed4000 Long Term Liabilities1000 Capital & Reserves? Net Capital Employed? Balance Sheet for Unknown Ltd. Apr 21 st CURRENT LIABILITIES

page 401 For PaulH Balance Sheet Structure – note where dividends and taxation are entered. Read&Summarise p 402 Uses&Limitations Q With the following changes for 2007 … Share Capital 170 & Retained Profit 55

Fxd Ass250Fxd Ass250 Crnt Ass Cash20Cash25 Debtors50Debtors70 Stocks95Stocks Crnt Liab. Creditors50Creditors50 Overdraft10Overdraft WRK. CAP.105WRK. CAP.125 NET A. EMPL355NET A. EMPL375 LTL (Deben.)50LTL (Deben.)50 LTL (Loans.)80LTL (Loans.)50 C&R (Ret. Prof)55C&R (Ret. Prof)75 C&R (Share C)170C&R (Share C)200 NET C. EMPL355NET C. EMPL st Dec st Dec 2008