Page 44 - A Level Business Studies - Financial Analysis Tasks
P. 44
Task 5.a
Look at the example of the Statement of Financial Position and calculate the Gearing Ratio.
STATEMENT OF FINANCIAL POSITION PLC ("Balance Sheet") - Example
£ £
NON-CURRENT ASSETS (Fixed Assets)
Property 253,000
Equipment 22,000
Vehicles 21,300
296,300
CURRENT ASSETS
Inventory (Stock) 31,700
Trade Receivables (Debtors) 144,267
Cash & Cash Equivalents (Cash & Bank) 13,223
189,190
Less CURRENT LIABILITIES
Trade Payables (Creditors) 155,490
Unpaid Tax 5,000
Dividends 15,000 175,490
Net Current Assets 13,700
Non Current Liabilities (long-term loans) (150,000)
Net Assets (Capital Employed) 160,000
EQUITY (CAPITAL) [Financed By]
Share Capital 115,000
Reserves 45,000
Total Equity 160,000
Gearing Ratio
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