1. List of words used in balance sheets. 1.Non Current Assets 2.Current assets 3.Stock 4.Debtors 5.Cash 6.Current liabilities 7.Creditors 8.Net assets 9.Equity Balance Sheet: To measure assets, liabilities at a point in time Do Now:- 1.What does a Balance Sheet Show? 2.What is an asset? 3.What is a liability? 1.What do the terms mean? 2.What are the alternative words for the words in red?

2. $ 000’s Stock12 Cash at bank22 Debtors32 Creditors68 Machinery240 Land and buildings300 Fixtures and fittings53 Loan (due this year)290 Mortgage250 Ashley Gardener Limited Ashley Gardener Limited is a family-run business producing a range of catering equipment. Activity - Activity - Create a Balance Sheet for Ashley Gardener Limited for 31 st March 2020. two What two problems does the business have – how would you solve them? Fully explain how your solutions may negatively impact on the business.

3. Ashley Gardener Limited Balance Sheet as at 31 March 2020 $ 000's Current assets Stock12 Cash at bank22 Debtors32 Creditors68134 Non-current assets Machinery240 Land and buildings300 Fixtures and fittings53593 Total assets 727 Less Liabilities Current liabilities Loan290 Non-current liabilities Mortgage250 Total liabilities 540 Net assets 187 Equity 187 Two problems 1.The firm is very short of working capital, it may have to take a large overdraft or sell fixed assets. 2.Only 26% of assets have been funded by the owner – a high % of revenue will have to cover interest on this debt.