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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