Chapter 3 • Financial statements and their interpretation
Jackson plc
Balance sheet as at 31 December 2007
Cost Depreciation
£ million £ million £ million
Assets
Non-current assets
Freehold land 550 – 550
Plant and machinery 232 (198) 34
Motor vehicles 90 (21) 69
872 (219) 653
Current assets
Inventories 41
Trade receivables (debtors) 108
Prepaid expenses 10
159
Total assets 812Equity and liabilities
Equity
Ordinary share capital – 200 million shares of £1 each 200
Retained profit 151
351
Non-current liabilities
10% secured loan notes 300
Current liabilities
Bank overdraft 86
Trade payables 43
Accrued expenses 14
Taxation 18
161
Total equity and liabilities 812The market price of the ordinary £1 shares was £3.49 at 31 December 2007. During 2007 the company paid a
dividend on the ordinary shares totalling £15 million.