Review the consolidated profit and loss account, balance sheet and consolidated cash flow statement shown on pages 37 to 40 of the Arsenal Holdings plc financial statements for the year ended 31st May 2016.

1. What specifically is represented by the figures for tangible and intangible fixed assets?

2. Do you think the financial position looks healthy? Give reasons. (Think about cash flow, sales revenue (turnover) and profitability and compare with 2015.) A thorough research is needed

2015 (restated) Company 2016 f000 Company 2015 f000 2016 Note Fixed assets Goodwill Tangible fixed assets Intangible fixed assets Investments 1,082 19,180 171,658 4,174 72,707596,094 421,059 146,005 4,977 13 30,059 30,059 30,059 30,059 Current assets Stock - development properties Stock- retail merchandise Debtors - due within one year 9,741 4,530 74,175 6,658 228,167 323,271 17(239,945 (275.332) 47,939 644,033 11,148 4,834 57,961 4,404 14 108,599 127,404 due after one year Cash and cash equivalents 15 15 16 10,235 137,639 (4,808) 132,831 162,890 (269,174)468(13,780) 26,505 135,104 (1,808) 33,296 163,355 304,806 Creditors: amounts falling due within one year Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year Provisions for liabilities and charges Net assets 64,861 637,568 (265,460) 18 21 (44,047(49,548) 328,061 325,311 149,187 149,110 Capital and reserves Called up share capital Share premium Merger reserve Hedging reserve Profit and loss account Shareholders' funds 62 29,997 26,699 62 29,997 26,699 (1,092) 69,64528119.051 325,311 62 23 29,997 29,997 24 25 271,303 328,061 149,187 149,110 Share f000 62 ShareMerger Hedging Capita Premium f000 Profit Reserve and Loss f000 Total Reserve E000 '000 At 31 May 2014 Transition to FRS 102 (see note 33) At 1 June 2014 restated Total comprehensive income for year '000 253,860 310,618 870 (92 254,822 311,488 29,99726,699 (92) 962 6229,997 26,699 ended 31 May 2015 restated At 31 May 2015 restated Total comprehensive income for the year (1,000 14,823 13,823 62 29,997 26,699 (1,092) 269,645 325,311 ended 31 May 2016 1,092 1,658 2,750 As at 31 May 2016 62 29,997 26,699 - 271,303 328,061 2016 E000 93,841 (8,331) 2015 F000 102,395 (2,206) Note Net cash inflow from operating activities Taxation paid 26a LL | | Cash flow from investing activities 746 748 (14,232) (54,190) Interest received 863 Proceeds from sale of fixed assets Purchase of fixed assets Player registrations Net cash flow from investing activities Cash flow from financing activities Interest paid Repayment of debt Net cash flow from financing activities Net (decrease)/increase in cash and cash equivalents in the year Cash and cash equivalents at start of year Cash and cash equivalents at end of year (14,302) (46,241) (66.928)59.0.9 26c I O LLL (59,633) (12,622) (7,668) (20,290) (1,708) 228,167 226,459 (12,993) (7,274) (20,267) 20,289 207,878 228,167 16