444 ACCOUNTING FOR MANAGERS
Table A3.1 Paramount Services PLC
Profit and Loss account
in £’000 2002 2001
Income 34,000 29,000
Less expenses 16,500 13,000
Operating profit before interest 17,500 16,000
Less interest expense 4,000 2,700
Profit before tax 13,500 13,300
Income tax expense 5,400 5,320
Net profit after tax 8,100 7,980
Less dividends paid 4,000 3,750
Retained profits 4,100 4,230
Number of shares issued 10,000,000 10,000,000
Earnings per share £0.81 £0.80
Dividend per share £0.40 £0.38
Market price of shares £8.55 £10.20
Balance Sheet
in £’000 2002 2001
Fixed assets 21,933 17,990
Current assets
Debtors 7,080 4,750
Bank 377 1,250
7,457 6,000
Less creditors due within one year
Creditors 4,300 3,750
Net current assets 3,157 2,250
Total assets less currentliabilities 25,090 20,240
Less creditors due after more than
one year
Long-term loans 2,750 2,000
Total net assets 22,340 18,240
Capital and reserves
Shareholders’ funds 10,000 10,000
Retained profits 12,340 8,240
22,340 18,240
