Page 22 - A Level Business Studies - Financial Analysis Tasks
P. 22
Task 4.c
Look at the example of the Statement of Financial Position and calculate the ROEE (Return in
Equity Employed). The Operating Profit was £39,331
STATEMENT OF FINANCIAL POSITION PLC ("Balance Sheet") - Example
£ £
NON-CURRENT ASSETS (Fixed Assets)
Premises 1,241,678
Plant & Equipmet 65,781
Vehicles 51,790
1,359,249
CURRENT ASSETS
Inventory (Stock) 76,891
Trade Receivables (Debtors) 67,178
Cash & Cash Equivalents (Cash & Bank) 27,648
171,717
Less CURRENT LIABILITIES
Trade Payables (Creditors) 92,167
VAT due to HRMC 24,123
Dividends 50,000 166,290
Net Current Assets 5,427
Non Current Liabilities (long-term loans) (250,000)
Net Assets (Capital Employed) 1,114,676
EQUITY (CAPITAL) [Financed By]
Share Capital 1,000,000
Reserves 114,676
Total Equity 1,114,676
Return on Equity
(Capital) Employed
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