200 Accounting: Business Reporting for Decision Making
Self-evaluation activities
5.1 The following is a list of account balances for Broadband Pty Ltd for the financial years ended
31 March 2016 and 31 March 2017.
Account31 March
2017
$31 March
2016
$Plant and equipment
Goodwill
Cash and cash equivalents
Accounts payable
Accounts receivable
Deferred tax assets
Deferred tax liabilities
Prepayments
Short-term borrowings
Long-term borrowings
Brand names
Licences
Issued capital
Inventories
Provisions for employee benefits (short-term)
Patents
Provisions for employee benefits (long-term)
Land and buildings
Accumulated depreciation — land and building
Accumulated depreciation — plant and equipment
Accumulated amortisation — brand names
Accumulated amortisation — patents
Accumulated amortisation — licences
Accumulated amortisation — software development cost
Other current assets
Retained earnings
Current tax liabilities
Software development cost25 124
5 245
18 000
23 241
20 120
9 154
15 356
6 859
9 254
14 652
4 350
8 658
28 654
6 854
9 642
2 400
8 198
32 725
12 585
5 684
2 864
1 142
3 568
3 458
7 684
9 184
6 845
7 15422 136
4 020
23 500
20 557
19 852
8 687
14 524
5 274
8 697
14 328
4 350
8 658
24 562
5 277
7 246
3 542
5 469
29 865
14 249
3 245
1 468
985
2 500
2 468
8 579
25 262
5 248
7 068Required
a. Prepare a narrative classified balance sheet for Broadband Pty Ltd as at 31 March 2016 and
31 March 2017.
b. Comment on Broadband Pty Ltd’s liquidity and financing.SOLUTION TO 5.1
a. Narrative classified balance sheet
Broadband Pty Ltd
Balance sheet as at 31 March
2017
$2016
$
Assets
Current assets
Cash and cash equivalents
Accounts receivable
Inventories
Prepayments
Other current assets18 000
20 120
6 854
6 859
7 68423 500
19 852
5 277
5 274
8 579
Total current assets 59 517 62 482