Liquidity comparison Elizabeth runs a small business called Data Services (DS) and her brother runs a small business called Engineering Services (ES). In the year ended 31 March 20X3 they both generated sales of £160,000 and both made a gross profit of £52,500.

Their statements of financial position as at 31 March 20X3 were as follows:

Transcribed Image Text:

DS ES Non-current assets 52,270 91,160 Current assets Inventory 36,480 Accounts receivable 42,140 37,200 2,520 Bank balance 10.420 89,040 2,300 42,020 Total assets 141,310 133,180 Capital 111,830 111,830 Current liabilities Accounts payable 29,480 16,580 Bank overdraft 0 29,480 4,770 21,350 141,310 133,180