Page 21 - GROUP 3 NAKED HOTEL LIMITED ANNUAL REPORT
P. 21
Analysis of Asset, Liability, and Capital
Assets:
The non-current assets of Naked Hotel Limited decreased by 6.9% because equipment
costing $580 was sold. However, this was counterpoised by the purchase of an equipment
costing $810. This, along with the increase in various current assets resulted in overall increase
of 7.2% ($18,567) in total assets.
Liabilities:
The business recorded an overall decrease in liabilities even though there was increase in
current liability. Total liability decreased by 9.5% when compared to 2015.
Shareholders’ Equity
There was a 28.2% ($32,169) increase in shareholders’ equity in 2016. This increase was
predominantly due to the increased retained profit and a transfer of $5,000 to general reserve
Naked Hotel Limited
Comparision of Asset, Liabilities and Capital
$275,859
$257,292
$143,242 $146,219
$129,640
$114,050
TOTAL ASSETS TOTAL LIABILITIES TOTAL EQUITY
2015 2016
Figure 5: Clustered Column Graph comparing assets, liabilities, and capital from current year
with previous year.
Overall the business is in a good financial position since debts are being reduced and
assets and equity are increasing for 2016 as depicted in Figure 5. The business will continue to
Page | 21
