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Part One The directors are extremely concerned about the fall in working capital. Provide a comprehensive analysis of the accounts of Greenway Builders Ltd using
Part One The directors are extremely concerned about the fall in working capital. Provide a comprehensive analysis of the accounts of Greenway Builders Ltd using an appropriate range of financial ratios in order to investigate. For the ratios you calculated, comment on any areas of concern identified and suggest reasons as to why these changes in performance may have occurred. Your workings eg ratio calculations should be attached as an Appendix in your final report, and the ratios you have calcu lated should be placed in a table at the appropriate point of the report. Profit & Loss account st December st December th December Sales Construction Costs: Labour costs Materials Subcontractor Production overheads Gross Profit Other costs: Administration salaries Administration overheads Marketing expenses Net Profit Interest expence Finance cost Taxation Net Profit after Tax Materials are purchased on credit from a single supplier Balance Sheet st December st December th December Fixed assets Current assets: Inventory Debtors Bank balance Total current assets Current liabilities: Creditors VAT PAYE Corporation tax Bank overdraft Total current liabilities Working capital Long term loan Net assets Equity: Share capital Reserves Current assets current liabilities
Part One
The directors are extremely concerned about the fall in working capital. Provide a comprehensive analysis of the accounts of Greenway Builders Ltd using an appropriate range of financial ratios in order to investigate. For the ratios you calculated, comment on any areas of concern identified and suggest reasons as to why these changes in performance may have occurred. Your workings eg ratio calculations should be attached as an Appendix in your final report, and the ratios you have calcu lated should be placed in a table at the appropriate point of the report. Profit & Loss account
st December st December th December
Sales
Construction Costs:
Labour costs
Materials
Subcontractor
Production overheads
Gross Profit
Other costs:
Administration salaries
Administration overheads
Marketing expenses
Net Profit
Interest expence Finance cost
Taxation
Net Profit after Tax
Materials are purchased on credit from a single supplier Balance Sheet
st December st December th December
Fixed assets
Current assets:
Inventory
Debtors
Bank balance
Total current assets
Current liabilities:
Creditors
VAT
PAYE
Corporation tax
Bank overdraft
Total current liabilities
Working capital
Long term loan
Net assets
Equity:
Share capital
Reserves
Current assets current liabilities
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