Question
Section B: Using the financial statements of XYZ Furnishings (below), comment on your interpretation of the financial health of the company. There is a maximum
Section B:
Using the financial statements of XYZ Furnishings (below), comment on your interpretation of the financial health of the company.
There is a maximum of 10 marks available for this section, four marks for your knowledge and understanding of the financial statements, four marks for your analysis and evaluation and 2 marks for your communication.
| Statement of Financial Position |
|
|
| Assets | ||
| Current | ||
| Cash and equivalents | 220 | |
| Trade receivables | 8,420 | |
| Other receivables | 10 | |
| Inventories | 1,000 | |
| ST Investments | 160 | |
| Non-Current | ||
| Land and Buildings | 14,644 | |
| Fix and Fit | 708 | |
| Plant | 15,012 | |
| Vehicles | 1,235 | |
| LT Investments | 1,500 | |
| Total Assets | 42,909 | |
| Liabilities | ||
| Current | ||
| Trade payable | 6,580 | |
| Overdraft | 150 | |
| ST Loans | 1,310 | |
| Taxation Due | 500 | |
| Dividend | 200 | |
| Non-Current | ||
| Loans | 8,000 | |
| Total Liabilities | 16,740 | |
| Net Assets | 26,169 | |
| Equity | 26,169 | |
| Retained Earnings | 10,063 | |
| Shareholders Equity | 16,106 |
| Income Statement | ||
| Sales | 60,600 | |
| COGS | 34,020 | |
| Gross Profit | 26,580 | |
| Operating Expenses | 15,256 | |
| Operating Profit | 11,324 | |
| Interest received | 559 | |
| Tax paid | 1,026 | |
| Financing costs | 3,050 | |
| Profit for the period | 7,807 |
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