Chapter7Q - Financial accounting for decision makers (5th...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Financial accounting for decision makers (5th edition) Atrill and McLaney Exercise Chapter 7 The balance sheet and inco me statements of Crow Ltd for the current year and previous year are set out below. Balance sheet as at 31 December Previous year Cost Depr’n £000 £000 Non­current assets Property, plant and equipment Land and buildings 159 12 Plant and equipment 150 30 309 42 Invest ments at cost Current assets Inventories Trade receivables Bank CV £000 Current year Cost Depr’n £000 £000 CV £000 147 120 267 150 417 222 270 492 15 33 48 207 237 444 240 684 165 120 9 294 711 195 150 ­ 345 1,029 Equity £0.50 Ordinary shares Share premium Revaluat ion reserve Retained profit Non­current liabilities Borrowings ­ 8% Loan notes Trade payables Bank 120 36 ­ 75 231 150 39 63 75 327 300 180 ­… 240 12 450 180 711 252 1,029 Income statement for the year to 31 December Previous Current year year £000 £000 Sales revenue 600 600 Cost of sales (300) (360) Gross profit 300 240 Expenses (180) (180) Profit for the year 120 60 Financial accounting for decision makers (5th edition) Atrill and McLaney Exercise Dividends of £60,000 were paid in respect of both years. Required: Using appropriate ratios, evaluate the changes in the financial posit ion and performance of the business as revealed by the financial statements. ...
View Full Document

Ask a homework question - tutors are online