Open the links below each statement for an explanation of what each term means.
Statement of comprehensive income (profit and loss account).
https://www.tutor2u.net/business/reference/income-statement-introduction
Statement of Financial position (balance sheet):
Balance sheet for XYZ plc as at 31 March 20X6
£'000
| ||
Fixed assets
|
1,800
|
Likely to find sub-totals for buildings, equipment and vehicles
|
Current assets
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Stock
|
300
| |
Debtors
|
250
| |
Cash
|
150
| |
Total current assets
|
700
|
Stock + debtors + cash
|
Current liabilities
|
(400)
| |
Net Current Assets
|
300
|
Current assets – current liabilities; also known as working capital
|
Net assets employed
|
2,100
|
Fixed assets + net current assets
|
Financed by:
| ||
Long term liabilities
|
700
|
e.g. loans from banks
|
Share capital
|
1,000
|
Amounts invested by shareholders
|
Profit and loss reserves
|
400
|
The profit accumulated that has been retained by the business
|
Capital employed
|
2,100
|
Long term liabilities + share capital + profit and loss reserves
|
Note that net assets employed = capital employed. This is always the case, because the capital employed is the amount of long-term money put into the business and the net assets employed how it is used.
https://www.tutor2u.net/business/reference/the-balance-sheet
Can you calculate:
1. Gross profit
2. Operating profit
3. Profit for the year (net profit)
4. Gross profit margin
5. Operating profit margin
6. Profit for the year (net profit) margin
7. Measuring liquidity (current ratio and acid test ratio)
