Chapter 3 • Financial statements and their interpretation
There are sets of multiple-choice questionsand missing-word questions
available on the website. These specifically cover the material contained in this
chapter. These can be attempted and graded (with feedback) online.
There are also two additional problems, with solutions, that relate to the material
covered in this chapter.
Go to http://www.pearsoned.co.uk/atrillmclaneyand follow the links.‘
Balance sheet as at 31 December
Last year This year
£000 £000
Non-current assets 8,072 10,456
Current assets
Inventories 1,850 3,166
Trade receivables 976 1,992
Cash 624 52
3,450 5,210
Total assets 11,522 15,666Equity
Ordinary shares of £0.50 each 6,500 6,500
Capital reserves 500 500
Retained profit 1,744 3,518
8,744 10,518
Non-current liabilities
Loan notes – 600
Current liabilities
Trade payables 1,320 2,236
Other payables 1,142 1,434
Taxation 316 518
Bank overdraft – 360
2,778 4,548
Total equity and liabilities 11,522 15,666Calculate the suitable financial ratios for High Street Enterprises plc for last year and this
year (use year-end figures where balance sheet items are involved) and use the ratios to
comment on the performance and position of the business.